ECB Executive Board said Bitcoin will pose a “major threat to financial stability”

nBankruptcy comment: The size of the European Central Bank officials have made a lot of comments on cryptocurrencies, basically, they think the current trading volume of cryptocurrencies is still small, will not pose a threat to the government’s economic system. However, Yves Mersch, the board’s executive director, said in an interview recently that if traditional financial institutions are involved in the field, then Bitcoin will have a negative impact on economic stability.n
nTranslation: Inan
Yves Mersch, a member of the ECB’s Executive Board, said that Bitcoin could pose a threat to economic stability if it involves the field of cryptocurrencies.n
In an interview with the German media, Mersch pointed out that the trading volume of bitcoin is “relatively small” at present and therefore has not posed a problem for the government’s monetary policy.n
However, he also warned:n
n”What worries me the most is when the financial market infrastructure, such as the stock exchange, gets involved in this business, which is a tremendous threat to financial stability.”n
nHe also pointed out that “speculation and hype” around digital currencies is also worrying investors. He said that although individual investors can bet on their likes and dislikes, they should not complain to the European Central Bank when they lose money.n
A month ago, Mersch said banks need to deploy “instant payments” as soon as possible to compete with the innovations offered by cryptocurrencies such as bitcoin.n
And in 2016, he said bitcoin has the potential to subvert credit card payments. He said at the time: “Innovative card payment solutions have the potential to further promote the use of credit cards to replace cash payments.”n

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