ECB Council Member: Central Banks Considering Crypto Regulation

A European Central Bank (ECB) governing council member has said that lawmakers and central banks are examining whether they should regulate cryptocurrencies.

According to a Reuters report, Ewald Nowotny, who is also the president of the National Bank of Austria, said:

“We’re asking ourselves if legislators or central banks should intervene.”

Speaking yesterday at a conference in Florence, Italy, Nowotny said the focus comes following China’s recent crackdown on bitcoin exchanges, saying the authorities there considered cryptocurrencies “fraudulent.”

The council member took a neutral stance on the potential risks of cryptocurrencies such as bitcoin, however, saying, “It is like buying shares on the bourse … people investing in this product can suffer losses.”

In September, China’s cryptocurrency exchanges received instructions from the country’s regulators, asking them to stop trading due to the fact that they are operating domestically without a formal license.

Ewald Nowotny image via Franz J. Morgenbesser/Flickr

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