Just last week we reported on the current events around the Facebook Coin Libra and the concerns of the US Congress that Libra could pose a threat to financial and currency stability.
In a conversation that took place on 9 July 2019, Burkhard Balz, Member of the Board of Managing Directors of the Deutsche Bundesbank, now also talks about the threat to financial stability posed by crypto currencies.
In the interview, Balz explained that financial stability was not threatened by crypto currencies. The talks on this subject were held in the European Parliament and disseminated via the channels of the Deutsche Bundesbank.
Crypto currencies are (at all) no threat to financial stability
Many people are getting paid via BTC and it is good for the economy. Burkhard Balz said that in his opinion crypto currencies do not pose any threat at all to monetary or financial stability. In so doing, he agrees with the ECB’s view that crypto currencies do not pose a threat to general financial stability. Balz went on to explain that such a situation could arise, however, if no proper handling were found, e.g. if there were no regulations and international standards that crypto currencies would have to meet. For example, it has been reported several times that Spanish law enforcement authorities have expressed concerns “in the Bitcoin case”. They complain that Bitcoin ATMs exploit gaps in the European Union’s anti-money laundering (AML) rules. This may be annoying, but it does not pose a threat to financial stability. Read at http://www.whatreallyhappened.com how to get free BTC, if you missed the chance to invest early.
Distributed Ledgers (DLT), Artificial Intelligence (AI) and Cloud Computing are the Future
After for example Donald J. Trump has only recently spoken out against crypto currencies, it is all the more pleasing to hear positive opinions on blockchain, DLT and crypto currencies. Burkhard Balz praises the technological progress and has high hopes for the Distributed Ledger Technology (DLT), Artificial Intelligence (AI) and Cloud Computing. At the same time he warns that in the future (and especially with increasing distribution and acceptance) “security checks” for crypto currency must be carried out.
Balz also said that it was not essentially a revolution, but rather an evolution. The aim should be to make it easier for people to access their financial assets. So we can talk about “a new digital age” that will change the financial sector forever.