A group of European economists believe that bitcoin does not pose a threat to financial stability, but most of them called for the strengthening of the oversight by regulators.
This is evidenced by the results of the survey, which was conducted by the centre for macroeconomics of the UK, and which was attended by 100 prominent European economists.
In response to the question “do you Agree that crypto-currencies currently represent a threat to the stability of the financial system or would be a threat in the next couple of years?” almost 50 percent of respondents said they “disagree” with this statement, while another 25 percent said they “strongly agree”.
Some of them argue that even with a market capitalization of almost $ 300 billion of bitcoin continues to play a negligible role in the global financial market.
For example, Michael McMahon, Professor of Economics from Oxford University, says:
The share of the cryptocurrency is still too small and the owners are no really large groups, especially among major investment groups to pose a serious risk to the entire financial system.
Similarly, Ethan Ilzetzki, associate Professor of the Department of Macroeconomics at the London school of Economics, called bitcoin and other cryptocurrencies “toy for a very narrow segment of investors.” In addition, they are “distant” from the financial system and “real economy,” he said.
The majority of respondents not seeing bitcoin threat, however, expressed concern as it represents a challenge to traditional currencies. In fact, 61 percent of respondents “agree” or “agree” with the fact that regulatory oversight of cryptocurrencies need to be increased.
For example, Sylvester, Acipenser, Professor of financial Economics at Tilburg University, argues that the cryptocurrency
undermine the monopoly of money creation by Central banks and lead to inefficiency of the customary and Treaty of monetary policy.
The European Central Bank as a whole resonates with the respondents economists. Addressing the European Parliament in late November, ECB President Mario Draghi said that digital currencies “are not those that may pose a risk for Central banks”.