Bitcoin – Needs Regulation
Christine Lagarde, President of European Central Bank (ECB), stated that bitcoin is highly speculative and needs to have a watch on its regulatory body.
Lagarde in a talk to Reuters on Wednesday stated that bitcoin in the foreseeable past has shown interesting business and funny & completely reprehensible money laundering activity.
Hence these acts are considered as an act of suspicion that needs to be under some regulations on a global scale acceptable to all.
Global Co-operation Needed for Bitcoin Regulation
She added that if there is a chance of escape then escape will be used. For these regulations to imply, there is a need for global cooperation and multilateral action which could start from discussions with G-7 and move to G-20 and further go ahead. And if we talk of the organization that could lead this is FATF (Financial Action Task Force) which has already expanded in this aspect.
Digital Euro -CBDC
The central bank digital currencies (CBDCs) were also brought into the limelight by Lagarde as she mentioned of ECB concluding a consultation yesterday of the general public regarding the digital euro with great response from the public.
Lagarde showed numbers that gave an insight into the people that logged in and responded to the many questions that were on that questionnaire concerning a digital euro. This field requires a system that is secure, safe, and at the same time responds to Europe’s demand.
Although no such timeline was provided that tells the release of the digital euro, it will take a great amount of time for making sure that it is safe enough for use. As the technological world is progressing pretty fast, so they need to sure which could take on average a time of five years.
And just to be clear that banknotes will not be eliminated with the news of the digital euro coming up.