The Director of the ECB: “Use instant payments to overcome in bitcoin”

The Director of the ECB: “Use instant payments to overcome in bitcoin”

Yves Mersch, Director of the European Central Bank, at an event in Rome criticized the cryptocurrency and encouraged retail and commercial banks to introduce instant payments to counter the growth of cryptocurrencies.

According to Reuters, Mersch said:

“Banks need to incorporate instant payments and to provide an alternative to the ongoing public debate on the alleged innovation, which are diagrams of virtual currencies”.

In a statement, Mersch traced the words of another banker – the head of Germany’s Central Bank Jens Weidmann, which urged banks to increase the efficiency of existing payment systems and to accelerate the introduction of instant payments. “I am confident that it will reduce the interest of the majority of citizens to digital currencies,” said Weidmann in June.

Mersch also spoke about the initiatives of the European Central Bank (ECB) regarding the “experiments with money with the use of various digital technologies”. At the same time, he said that he sees prospects “reckless use” new and innovative financial technologies, at least the Central Bank.

Mersch said: “We need to experiment with money through a variety of digital technologies. Other reckless application of a more destructive nature is not sufficiently reliable”.

This statement by the Director of the ECB acceded to a number of my colleagues who in recent months expressed their opinion about the cryptocurrency. The ECB Executive Board member Benoit coeure said that the ECB and other Central banks “do not ignore” cryptocurrency. Vice-President of the ECB Vitor constancio also added that “the so-called private cryptocurrencies will never prevail” over the official currency.

However, the most meaningful was the statement of the ECB President at the end of September. “Our job is not part of the ban or something like that… or the regulation of bitcoin,” said the ECB President, Mario Draghi, confirming that the ECB has neither the authority nor the power to ban decentralized cryptocurrencies.

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