The Deutsche Bundesbank is the central bank of the Federal Republic of Germany. The central area of activity is the monetary policy of the Eurosystem. Burkhard Balz is Member of the Board of the Deutsche Bundesbank and a few days ago he gave a speech in Brussels on "Digital transformation – from a central bank's point of view". Balz is sure of one thing: the digital transformation is taking place here and now and she is so great that she change our lives and the way we work is. Also on Bitcoin and cryptocurrency topics, an increasingly interesting topic for banks, Balz intervened:
Followed by the hype of crypto-tokens such as bitcoins and stablecoins – these are chips whose value is linked to an existing currency, like Facebook's cryptocurrency Libra, the titles have dominated. I will stay brief here: Cryptocurrencies do not threaten monetary and financial stability(…) However, gaps may arise if they fall outside the mandate of the regulators or if international standards are lacking. Any new propagation of new crypto-currencies would therefore warrant careful consideration. Its technical stability needs to be assessed, as well as its impact on monetary and financial stability. Rest assured that we are monitoring potential threats in a coordinated manner and consider regulatory action when needed.
He assumes that Bitcoin and other cryptocurrencies no danger to be present. Nevertheless, one should keep an eye on cryptocurrencies and, ideally, examine their ability to influence financial stability. regulatory measures want to take.
the full english speech of the council member can be read here.
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