ECB Calls for Global Crypto Regulation
According to Fabio Panetta, member of the ECB Board, cryptocurrencies are a global phenomenon, so a coordinated effort is needed to regulate them.
He has noted speaking at Columbia University that the potential collapse of the crypto industry poses a serious risk to financial stability.
He believes that the capitalization of digital currencies is about 1% of the global value of financial assets. According to him, this figure has already surpassed the size of the US subprime mortgage market, when it was worth $1.3 trillion and triggered a global crisis.
Panetta has said that both markets demonstrate “strikingly similar dynamics.” For this reason, regulators should respond, because cryptocurrencies by their nature are “not backed or managed by a credible operator.”