ECB sees limited risks to financial stability from cryptocurrencies

The European Central Bank (ECB), in a new report, described the risks to financial institutions from digital assets as ‘limited’.

\n\n

“Crypto assets are still not widely used for payments, and euro-area financial institutions are little exposed to crypto-linked financial instruments, so the risks to financial stability currently appear limited,” the document says.

\n\n

The ECB noted growing interest in digital gold not only from retail investors but also from some institutional investors and non-financial corporations.

\n\n

“Price volatility makes Bitcoin risky and speculative, while its outsized carbon footprint and potential use in illicit activities are a cause for concern,” the ECB added.

\n\n

Earlier, ECB President Christine Lagarde warned about money-laundering risks with cryptocurrencies. In early 2021 she called Bitcoin a speculative asset subject to regulation.

\n\n

Earlier in May, the ECB described digital gold a threat to the concept of sustainable development.

\n\n

Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analytics.