Fabio Panetta (ECB) on cryptos: gambling is the second oldest profession

Cryptocurrencies are a form of financial gambling with no useful social or economic function, the Italian central banker argued.

Italian central banker Fabio Panetta, member of the Board of directors of the European Central Bank, has spoken in favor of immediate regulation of the cryptocurrency market to protect investors and the stability of the global financial system.

- Advertisement -

“It’s not just a bubble,” Panetta warned. “Many bubbles burst one after another,” he added in a speech in London.

Uncovered digital assets are a form of financial gambling with no useful social or economic function, he said.

Even stablecoins, which are supposed to hold their value steady by being linked to an asset pool, are stable in name only, he noted.

“But these flaws alone are not going to lead to the end of cryptocurrencies,” he assessed, according to Reuters. “Gambling is possibly the second oldest profession in the world.”

The links between the cryptocurrency market and the financial system could be strengthened, especially if big tech companies enter the sector, which means regulation is needed immediately, Panetta warned.

Previous Articles:

- Advertisement -

Latest News

CrowdStrike Stock Hits Record High After Analysts Hike Price Target

CrowdStrike Holdings (CRWD) stock reached an all-time high with a gain of more than...

Amber International Raises $25.5M to Grow $100M Crypto Reserve Fund

Amber International Holding raised $25.5 million in a private placement to expand its $100...

Traders Flock to Hyperliquid Apps Amid Hopes for Airdrop Rewards

Investors are moving millions into projects on the Hyperliquid blockchain in hopes of future...

Bank of Russia Rules Out Cryptocurrency Investments, Cites Risks

The Bank of Russia will not invest in cryptocurrencies.The central bank sees cryptocurrencies as...

Saylor Sets Sights on Making MicroStrategy a Leading Bitcoin Bank

MicroStrategy aims to become a major Bitcoin-backed bank, following early predictions from Hal Finney.Founder...

Must Read

How to Check The Rarity of An NFT

Whenever you invest in an NFT collection, you might have noticed that some NFTs are more expensive than others. NFT collections are often made...