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The European Central Bank Executive Board Member, Fabio Panetta, says that cryptocurrencies need more regulations since they are not fully decentralized.
Source: European Central Bank
BTCUSD is down 0.27%
The board member wants cryptocurrencies policies to be aligned across all jurisdictions globally to reduce the possibility of massive sector collapse.
Panetta remarked while speaking at Columbia University that digital assets were causing instability and insecurity in the financial space, terming it ‘the new wild west.’
He adds that it is necessary to unify standards between the cryptocurrency and the traditional financial sector space.
Panetta compares the cryptocurrency market, which is currently valued at $1.3 trillion, to sub-prime mortgages at the point of collapse, citing similar dynamics. He adds that the regulators should step up considering the unsupported sectors of the crypto space.
The ECB member also cited the growing number of security violations and illegal activities in the sector as well as concerns around the environment and energy.
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