European Central Bank (ECB) published a report entitled Crypto-Assets: Implications for financial stability, monetary policy, and payments and market infrastructures, which addresses the potential impact of cryptocurrency on the economy.
The document notes that digital currencies can affect financial stability only if they are recognized as substitutes for deposits and cash. This means that it does not pose a threat now.
Nevertheless, at the moment cryptocurrency does not meet the definition of money, and their use is limited, the report says.
According to the authors of the document, one of the main obstacles using cryptocurrencies as money is the absence of the absence of a specific institution (for example, a central bank or a monetary authority) protecting the value of cryptoactive assets.
Regulator also notes that special development requires the development of the market of stablecoins, “because they can become less volatile if provided with reserves of central banks.”
Note these thoughts have already been expressed by the head of the Bank of France and one of the representatives of the ECB, François Villeroy de Galhau, who said that he sees the future of the stablecoins.
Earlier, the President of European Central Bank, Mario Draghi, said that the regulator does not recognize Bitcoin as currency, and also stressed that cryptocurrency is currently not significant enough to influence macroeconomics.