According to the European Central Bank (ECB), currently, cryptocurrencies do not poss a threat to Europe’s financial stability. This was revealed in a recent report published by the bank.
The ECB Report States That cryptos Do Not Serve the Same Function As Money
The report further stated that the current combined value of crypto-assets is small in comparison to the continent’s financial system, and “linkages” to the financial sector are still limited.
The report continued that most banks in the EU do not own a signigicant amount of crypto-assets. Importantly, the cryptocurrencies do not serve the same function as money.
The report continued that currently, a very small amount of merchants currently allow buying of goods and services with bitcoin. As such the coin has little “effect on EU economy” or on monetary policy.
The central bank says:
“The high price volatility of crypto-assets, the absence of central bank backing and the limited acceptance among merchants prevent crypto-assets from being currently used as…