European Central Bank VP says crypto should be regulated like other assets

European Central Bank (ECB) Vice President Luis De Guindos wants rules for traditional financial assets to apply to cryptocurrencies.

In a summer course presentation offered by the European Parliament, De Guindos said that while cryptocurrencies should not be prohibited, issuers must follow the same conditions as other financial assets.

He added that cryptocurrency users should also avoid everything that has to do with terrorist financing and money laundering.

De Guindos noted that due to their pseudonymous traits, cryptocurrencies can be easily used unlawfully.

The EBC official De Guindos calls cryptocurrencies “crypto-assets” because, in his view, they don’t validly satisfy payments. He added that crypto-assets don’t impact the financial stability of the region.

De Guindos also noted that these new tools have no economic basis compared to other more traditional assets and their value only comes from scarcity.

The ECB is studying the feasibility of creating a digital euro to give it an instrument to fight the rise of private alternative payment methods such as cryptocurrencies and those issued by fintech companies.

De Guindos believes that the digital euro's creation is necessary as it is not trivial in terms of the potential implications for monetary policy and financial stability.