Mario Draghi, president of the European Central Bank, has said itâs not his institutionâs job to regulate cryptocurrencies.
As part of the ECBâs #AskDraghi video series, the former Italian central banker said he has seen many users on Twitter ask if the ECB would regulate or even ban bitcoin.
In response, he said:
âItâs not the ECBâs responsibility to do that.â
Draghi also discussed whether he would recommend purchasing bitcoin in response to a question from a college student.
He indicated he would think âcarefullyâ about buying bitcoin, explaining that he does not see it as a currency. While the euroâs value is stable, he added, âthe value of a bitcoin oscillates wildly.â
Also hitting out at cryptocurrenciesâ decentralized nature, he continued: âThe euro is backed by the European Central Bank. The dollar is backed by the Federal Reserve. Currencies are backed by the central banks or their governments. Nobody backs bitcoin.â
This is not the first time Draghi has made such comments on cryptocurrencies and their regulation. The ECB chief said in September 2017, that the ECB itself has âno powerâ to regulate bitcoin, and, in November, he said that cryptocurrencies have a limited impact on the world economy.
At the same time as it published the video, the ECB released an explainer on bitcoin that goes into deeper detail on how the institution sees bitcoin.
In addition to echoing Draghiâs comments on price volatility and the lack of institutional or government backing, the explainer notes that bitcoin is not accepted widely and âtransactions are slow and expensive.â
Furthermore, it adds that there are no legal protections for users who lose their bitcoins to theft if their wallet were to be hacked.
Mario Draghi image via ECB/YouTube