European Central Bank Executive Board member Mersch expressed concern about cryptocurrency “gold rush.”

nBankruptcy Review: The managing director of the Bank for International Settlements once said that the modern endorsement of public monetary credit must be trusted, flexible and tested, and as a result, it is a scam and bubble to criticize the cryptocurrency. ECB Executive Board members also expressed concern, but his focus was on cracking down on illegal use and collecting data to analyze how to conduct reasonable and effective supervision. The EU’s top securities regulator, the European Securities and Markets Authority is also the center of gravity for the new year with cryptocurrency regulation, not a ban. At least for the moment technically, the credit endorsement of cryptocurrencies is an advantage, and the only thing that needs to be done is the test of time.n
nTranslation: Annie_Xun
ECB Executive Board member Yves Mersch expressed support for the recent statement by Agustin Carstens, managing director of BIS, Bank for International Settlements, calling Bitcoin a bubble, a Ponzi scheme and a threat to the central bank.n
The Financial Times reported that Mersch said that although regulators have taken a wait-and-see approach to cryptocurrency, “its agenda has been advanced” due to the acceleration of speculation at the end of last year. “n
However, while BIS shares the same concerns with Carstens, the market has not yet reached a level sufficient to affect the overall economy.n
In fact, the central bank is “more concerned about the social and psychological impact of market speculation.”n
Mersch said:n
n”There is so much cash flow, just like gold rush, but no gold.”n
nHe also mentioned the illegal use of cryptocurrencies in money-laundering and terrorist financing, and may require a solution to “force” non-regulated exchanges to report transactions and provide the ECB with “data to identify better response scenarios.”n
Carstens argued on February 6 that cryptocurrencies could become “parasites” in the financial system and must apply the same standards as banks and payment services. Do not allow cryptocurrencies to vandalize the central bank’s credit.n
At that time he said:n
n”A trusted, flexible, proven modern way of providing credit for the public money is an independent central bank.”n
nThe day before Mersch issued a statement, the EU’s top securities regulator, the European Securities and Markets Authority, released a report that cryptocurrencies will be one of the top priorities in 2018.n
In its 2018 regulatory calendar, one of the five major tasks of the year was to monitor developments in financial innovation, including cryptocurrencies and blockchains.n

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