European Central Bank, Cryptocurrencies, & Evolution of Money

The European Central Bank & Cryptocurrencies 

Yves Mersch, an Official Monetary and Financial Institutions Forum member of the Executive Board of the European Central Bank (ECB)  submitted a lecture this Thursday, where he makes an analysis over the future and financial impact of cryptocurrencies.

Mersch says that “The most recent beguiling wisps are named variously ‘cryptocurrencies’ – to denote the use of cryptographic methods and technology – or “virtual currencies” (VCs) – to denote their lack of legal recognition.”

He refers to this absence of regulation as an open door to illegal schemes, but he also recognizes the potential of cryptocurrencies as a medium of exchange. Moreover, he foresees that money itself is going through a change and that virtual currencies are simply a consequence of that condition.

Mersch also goes through an intensive analysis on virtual currency regulation, protection of the financial market infrastructures and issuance of digital currency by the ECB.

Mersch goes on saying that “virtual currencies are not money, nor will they be for the foreseeable future. Their market share is still small and their ties to the real economy are still limited.” However, Mersch says that this can be subject to change. Regulators and legislators at all levels should therefore urgently pay close attention to mitigating the potential risks that could stem from growing VC business.

He concludes by sending out an alert: technology may in time become widespread and useful, but early versions of it may fade away. However, according to him, eventually the technology will bring a lot of changes in all spheres.

Steve Bannon says cryptocurrencies are a tool to help the European anti-establishment movement

Yves Mersch delivers his report a day after Steve Bannon commented on Bitcoin in an event in Zurich. Steve Bannon, Trump’s former chief strategist who is currently travelling through Europe referred to cryptocurrencies as a tool to help the European anti-establishment movement.

During a lecture at an event in Zurich, Bannon made note that cryptocurrencies take control of the central banks away, which could give  the power back to the people. Additionally, the former chief strategist stressed that governments, central banks and tech companies are trying to strip away the rights and identities of ordinary citizens. He pointed out blockchain technology as the perfect tool to avoid this kind of oppression.

Bannon commented:

“Once you take control of your currency, once you take control of your data, once you take control of your citizenship, that’s when you’re going to have true freedom.”

Bannon also referred to cryptocurrencies and blockchain as capable of “empowering the populist movement, companies, and empower governments to get away from the central banks that debase your currency and makes slave wages.”