For ECB, crypto-currencies are dangerous!

For ECB, crypto-currencies are dangerous!

If you follow the international news, you know that the conflict in Ukraine has significant economic consequences almost everywhere. First, directly in these two countries: Russia is increasingly isolated, especially under the involvement of the European Union, and Ukraine, which needs donations to counter the attacks. However, it goes even further than that: oil prices are rising, gas prices are going down the same path and some currencies are falling in their prices, especially the ruble. It is in this context that crypto-currency intervenes, especially bitcoin.

In fact, sanctions applied to Russia, especially by blocking the SWIFT system, Use Bitcoin as a safe haven, but carry out international transactions. So, instead of being blocked by EU approval, thanks to Bitcoin, Russia can continue to exchange capital with other countries. The European Central Bank (ECB) wants to warn in this context: Using Bitcoin, Russia can avoid sanctions.

According to researchers, the use of bitcoin should be moderate

Admittedly, The Russia uses More bitcoin than ever before. Moreover, such use of cryptocurrency, the size of which, before 2021, is not obsolete. In fact, according to the Kaigo Research Institute, As of March 22, 2022, only 9 Millions of dollars were converted into ruble bitcoins. This is the amount to be kept in perspective: the global size of bitcoins is often between 20 and 40 Billion dollars. Moreover, this amount is relatively low for such a country Russia. This is especially true because Russia is a large country when we shift funds nationwide, and we are talking about billions of dollars.

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Regulation of upcoming crypto-currencies

However, real regulation must take place. We are not saying that this is necessary, but various central banks are taking this matter very seriously. In fact, It is hard to imagine the banking system leaving financial flows in such an opaque setting. It is not uncommon for organized crime, or terrorism, to see channel funds through crypto-currencies, especially bitcoin. This is why the various central banks need to express their views as soon as possible.

Also, another phenomenon The origin of this regulation may be: Creation of coins Virtual by the same banks. China has also recently embarked on an adventure: the e-yuan is currently being tested in some parts of the country. In the United States, Biden management is devising a strategy to create a virtual currency. Finally, in Europe, the EU is planning the first tests of the e-Euro by 2023 or 2024. It’s a bit of a shame that the old continent is still a little behind, but all the elements are in line: Bitcoin has changed our world economy, and now only the banks can take inspiration from it.

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About the Author: Seth Sale

"Passionate creator. Wannabe travel expert. Reader. Entrepreneur. Zombie aficionado. General thinker."

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