President of the European Central Bank (ECB) Mario Draghi) shared his views on cryptocurrencies and stablecoins. He believes that these assets are unable to replace the money.
In her letter to member of the European Parliament Eva Kaili) Draghi stressed that the entire system of European Central banks is closely monitoring the development of the cryptocurrency industry.
“We analyze cryptocurrencies and stablecoins to understand their possible impact on monetary policy, security and efficiency of payments and market infrastructure, as well as on the stability of the financial system,” he wrote.
At the same time, despite a positive view of new technologies, Draghi believes that stablecoins and cryptocurrencies have a rather low value, although this may change with the development of technologies.
“Stablecoins and cryptocurrencies are quite limited in their use. They are simply not designed to make them a suitable substitute for money,” the ECB President said.
Draghi said that the ECB is considering issuing a digital form of the Euro. At the same time, the technological part of such a stablecoin is not a problem, doubts are raised about “its usefulness in terms of costs and benefits for the population”.
Recall that in may, the ECB President said that cryptocurrencies are a very risky tool for investment.