Wilma Woo · March 13, 2018 · 1:30 pm
The European Central Bank (ECB) claimed Bitcoin is “not the answer to a cashless society” March 13 while also casting doubt on bank-issued digital currencies.
Bitcoin ‘Spotlights System Failures’
In an “opinion piece” co-authored by Benoît Cœuré, ECB board member and chair of the Bank for International Settlements’ (BIS) Committee on Payments and Market Infrastructures, as well as chair of the BIS Markets Committee Jacqueline Loh, the bank argues Bitcoin represents a “challenge” due to banks’ failure to provide suitable international remittance options for consumers.
“Despite its many faults, bitcoin has put the spotlight on an old failing of our current system: cross-border retail payments,” they write.
…These payment channels are generally much slower, less transparent and way more expensive than domestic ones. Improvements here are the best way of rising to the bitcoin challenge.
ECB: ‘Jury’s Out’ On Central Bank Cryptocurrencies
The ECB has signalled a conspicuously hands-off approach to digital currency beyond its control in 2018.
Last month, chair of its Supervisory Board Daniele Nouy told mainstream media regulation of the phenomenon was “not exactly very high on its to-do list” and that EU banks’ involvement with cryptocurrency was “very, very low.”
This came despite the institution presiding over member states in which the ‘War on Cash’ is highly advanced, notably Sweden,