ECB: Cryptocurrencies are Gold Rush Without Gold

February 9, 2018

Yves Mersch, executive board member at European Central Bank (ECB), voiced support for general manager of the Bank for International Settlements (BIS) Agustin Carstens who would say some days ago, Bitcoin is a bubble and a Ponzi scheme.

According to Mersch, the hype aroused on cryptocurrencies at the end of last year makes the matter more significant despite financial regulators taking sit-on-the-fence approach towards it.

He also added, he cannot agree with Carstens on a single point that cryptocurrencies are able to influence the global market. Mersch believes, the crypto one is not big enough to do so. As he said, ECB is far more concerned about social and psychological effects many investors are subject to.

“There is so much money flowing in that it's like a gold rush – but there is no gold”, Mersch claimed.

He has also made it a point once more, cryptocurrencies are used for criminal activity financing so regulators probably have to make all uncontrolled crypto trading sites account for their transactions to solve the problem.

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