Across the globe, many governments are now starting to consider the idea of adopting cryptocurrencies. By doing this, they will be accepting cryptos like Bitcoin and Ethereum as real world currencies with a real use value. Yes, this will eventually mean there will come a need for regulation and (probably) strict regulation, however we must remember that this is a good thing. The wider global adoption of cryptocurrency can only start when the governments start to accept it.
According to recent reports, the European Parliament (made up of a number of European member states) have now confirmed that they do not see cryptocurrencies as a threat and thus, the likes of Bitcoin is something that the Parliaments Governments are now looking deeper in to. Is this the first step towards a Europe-wide adoption of crypto?
According to one such report:
“The European Central Bank (ECB), Eurozone’s chief financial regulator, has released its report on cryptocurrencies and their implications on the financial stability of the region. The paper took a neutral stance towards digital assets and said that they weren’t a threat to the economy.”
Comments by the ECB continue as follows:
“The analysis shows that crypto-assets do not currently pose an immediate threat to the financial stability of the euro area. Their combined value is small relative to the financial system, and their linkages with the financial sector are still limited. The sector nevertheless requires continuous careful monitoring, as market developments are dynamic and linkages to the wider financial sector may increase to more significant levels in the future.”
By recognising that cryptocurrencies are not a threat to current financial systems, this opens new doors for further research into the field within Europe. As the ECB comments state, this area does require careful consideration. The markets move rapidly and thus, if banks and Governments within Europe want to start adopting crypto, they need to be aware of its volatility and the risks associated with it. As with any interaction with the blockchain, education is key. Now, as a result of these comments we can only expect that the ECB will push towards exploring the blockchain at a much deeper level, encouraging other local Governments within Europe to start doing the same thing. Eventually, we do expect a number of European countries such as Malta and Switzerland to start adopting crypto, perhaps with the ECB comments in mind, this could happen sooner than we think.