Will the European Central Bank Stand Next to Cryptocurrencies?
The European central bank has recently published a report about cryptocurrencies and has talked about the ineffectiveness of cryptocurrencies on the global economy. In the opinion of the European central bank, cryptocurrencies cannot force great change on to the world of economy. This expression of opinion has garnered different reactions and proposes the importance of more precise look to the cryptocurrencies and their infrastructure, meaning Blockchain.
Are Cryptocurrencies Accepted in Different Parts of the World?
The approach of the European Union toward cryptocurrencies has been neutral so far. Even the mentioned report cannot express the serious approach of the EU toward cryptocurrencies. It should be accepted that new currencies that have entered the world, in the short time period of their presence, have created an industry with assets accumulating up to $250 billion. Such an amount has been gathered in less than a decade and is a very considerable amount. What makes some people hesitant about the capacities and opportunities of cryptocurrencies is their unpredictable path in their life cycle. The involvement of complex digital technologies in implementing these currencies has led to the fact that very few experts and people can predict and analyze the trends related to cryptocurrencies. In any way, the move of cryptocurrencies from an archaic market to a multi-billion-dollar industry is very considerable.
From the other hand, regulators, and countries such as China, Taiwan, and Russia have problems with cryptocurrencies. In the mentioned countries, cryptocurrencies are banned, and in many parts of the world, regulating and overseeing them seems like hard work. Though countries such as Canada, the U.S., and Australia have a more positive approach regarding cryptocurrencies compared to other parts of the world and are attempting to regulate and implement them.
What Is the Approach of Europe toward Cryptocurrencies?
As it was mentioned earlier, Europe has not expressed a specific opinion about cryptocurrencies. The report by the European central bank and remarks made by other European authorities do not lead to a specific conclusion on their part. Perhaps one of the main reasons the EU seems neutral in the field of cryptocurrencies is the existence of 28 countries in this union. A large number of countries are being faced with challenges in coming to a consensus regarding cryptocurrencies. Since there will surely be paradoxes among the votes of various countries in this field. In the recent report by the European central bank about cryptocurrencies, we see that Bitcoin and its counterparts are introduced as digital assets. The European central bank believes that these cryptocurrencies cannot replace real currencies, but the volatilities and the unstable situation that they have prevent them from being a threat to the legal currencies and payment systems.
zhere Will the Story of Europe and Cryptocurrencies Get to?
The fact is that until legal entities and central banks do not recognize cryptocurrencies, the possibility of their being replaced by real currencies will be very little. However, how will banks, institutes, and legal entities and bodies show favor toward cryptocurrencies? Perhaps that entrance of famous brands like Samsung or companies such as Facebook to the field of cryptocurrencies and the cooperation between banks and communities will prepare the possibility of their acceptance. For example, in order for Facebook to release its special cryptocurrency to the market, it has entered into talk with many institutes and banks. Collaborations that are done this way will bring good news for the world of cryptocurrencies.