ECB wants EU to enact crypto legislation
The European Central Bank (ECB) underlined in a pre-released chapter of its Financial Stability Review that cryptocurrency's appeal among financial institutions is growing. It has cautioned European Union (EU) that if there is no regulatory framework in place, crypto dangers could extend to the rest of the economy.
Reaction
As expected, pro and anti crypto lobby is discussing as per their understanding and logic.
Pro Crypto : The ECB's pre release chapter indicates France has the lowest number of crypto users in Eurozone (mere 6%), and ECB President Christine Lagarde is from France, so some people believe that the survey data was influenced only to favour Mrs. Lagarde. However, crypto opponents disagrees.
Anti Crypto: Opponents of crypto are impugning the algorithm by pointing to the present crypto market decline, and the terrible collapse of the Terra Blockchain coins (Luna and UST). However, crypto supporters are not satisfied they claims that every market is volatile.
EU Countries Will Enact Together
Looking at the current state of the crypto market, it appears that neither legislation nor technology has had any impact. To counteract this, the European Union is enacting legislation together to regulate cryptocurrencies. Mrs. Lagarde has urged early solution in dealing with cryptocurrency.
Ban is Impossible
The EU cannot make cryptocurrencies illegal. Cryptocurrency is a big part of life now. The war in Ukrainians are using cryptocurrency to pay for their basic requirements, while largest country Russia is drafting Pro-Crypto regulations. It is also difficult to prohibit a technology and get market adoption because both are dependent on development and public backing.
Conclusion
EU countries can enact a single law that affects the cryptocurrency market for the entire Eurozone. The law, on the other hand, will only control exchange platforms; ordinary people will choose their own paths.
