The president of the European Central Bank, Mario Draghi, also had something to say about digital currencies. Some days ago, it had been the Nobel Prize winner, Robert Shiller. Bitcoin continues to generate debates, controversies, and strong opinions.
Draghi, an Italian banker with a long history and great experience, spoke about the risks involved in virtual currencies, and more specifically Bitcoin. The official, number one at the European Central Bank, said that it would be good to remember the last great crisis and its connection with financial innovations. If financial innovations are concerned, Bitcoin is in the lead.
“One of the lessons of the great financial crisis is that financial innovation, in this case it’s financial and technology innovation… should be embraced with lots of attention to its potential risks”, the Italian banker stated.
When Draghi was asked about the regulation, he said that “bitcoin is not mature enough to subject it to regulation.” “With anything that’s new, people have great expectations and also great uncertainty. Right now, we think that especially as far as bitcoins and cryptocurrencies are concerned, we don’t think the technology is mature for our consideration”, Draghi said.
The current situation
These days, the price of the most famous cryptocurrency is around $ 5,700 per unit. Since the beginning of this year, the price of Bitcoin has increased by more than 500%. In turn, its capitalization has increased and reached 90,000 million dollars.Trade on BTC
NOTE: This article is not an investment advice. Any references to historical price movements or levels is informational and based on external analysis and we do not warranty that any such movements or levels are likely to reoccur in the future.
In accordance with European Securities and Markets Authority’s (ESMA) requirements, binary and digital options trading is only available to clients categorized as professional clients.
GENERAL RISK WARNING
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
77% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.