Digital currencies do not make any sense, according to ECB Council Member

Digital currencies do not make any sense, according to ECB Council Member
Jan 8, 2019 by Rico Wise

Still, a high-profile member of the European Central Bank is of opinion that the collapse is still imminent.

Ardo Hansson, the governor of the Estonian central banking institution, has stated at the 5 Years with Euro conference that digital currencies would see their end as a total load of absurd. The regulator declared that the bubbly has already begun the process of collapsing and it might continue doing so in the event that the cryptomarket regains its equilibrium.

Back in 2017, interest in the cryptocurrency space has grown exponentially, turning into an uncontrollable buying streak as its market cap skyrocketed over 813 billion USD. It then dropped last year to as low as nearly a 100 billion USD, accounting for an 86% wipeout of the cryptocurrencies. Those who managed to timely get in and get out have ultimately come out on top with lots of money. However, those who did not – suffered.

In one of his previous statements in early 2018, back when BTC price was approximately at 19,000 USD, Hansson had made the comparisons of digital currency hype with a real bubbly, which might turn out worse than the Tulip mania back in 17th century. He also stated that crypto bubbles would not pose a threat to the stability of finance.

Hansson has repeatedly shared his concerns over the increasing relation between the regulatory-compliant financier sector and digital currencies. He cautioned the authorities of the possible dangers of the nascent asset class in the event that “grandmothers begin investing” in them.

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The European Central Bank (ECB) is the central bank for the euro and administers monetary policy of the Eurozone.
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