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Central Bank of Germany representative Burkhard Balz says that cryptocurrencies do not pose a threat to financial stability.
Central Bank of Germany representative Burkhard Balz said that cryptocurrencies do not pose a threat to financial stability. Balzâs comments came at a talk at the European Parliament, as reported in a post published on the institutionâs website on July 9.
Burkhard Balz, Member of the Executive Board of the Deutsche Bundesbank, stated that âcrypto-tokens currently do not pose a risk to monetary or financial stability.â Furthermore, he also noted that âgaps may occur where they fall outside the scope of regulatorsâ authority or where there is an absence of international standards.â
This idea is in line with the claims of Spanish law enforcement representatives, who pointed out that Bitcoin ATMs show a gap in European Unionâs Anti-Money Laundering regulations, as Cointelegraph reported earlier today. Balz also warned in his talk that any increase in the popularity of crypto assets warrants close scrutiny. Still, he also expressed high hopes for digital transformation brought on by artificial intelligence, distributed ledger technology, and cloud services, saying:
âWe are not talking about âevolution,â about banking adapting to the wants and needs of a digital generation â we are talking about a true âdisruptionâ that may change the financial sector for good.â
Last week, European Central Bank executive board member Benoit Coeure said that financial regulators must act fast to prepare for Facebookâs Libra stablecoin.
As Cointelegraph reported last month, Australiaâs central bank said Bitcoin and cryptocurrencies would remain outside mainstream payments.
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