Central Bank of Germany representative Burkhard Balz said that cryptocurrencies do not pose a threat to financial stability during a talk at the European Parliament reported a post published on the institution’s website on July 9.
Burkhard Balz, Member of the Executive Board of the Deutsche Bundesbank, stated that “crypto-tokens currently do not pose a risk to monetary or financial stability.” Furthermore, he also noted that “gaps may occur where they fall outside the scope of regulators’ authority or where there is an absence of international standards.”
This idea is in line with the claims of Spanish law enforcement representatives, who pointed out that Bitcoin ATMs show a gap in European Union’s Anti-Money Laundering (AML) regulations. Balz also warned in his talk that any increase in the popularity of crypto assets warrants close scrutiny. Still, he also expressed high hopes for digital transformation brought on by artificial intelligence, distributed ledger technology, and cloud services, saying: