Bundesbank: Bitcoin Must Be Regulated at the International Level

January 16, 2018

Bundesbank: Bitcoin Must Be Regulated at the International Level

Joachim Wuermeling, a board member of the Deutsche Bundesbank, thinks that Bitcoin must be regulated rather at the international level than at the national level.

Wuermeling believes that it is very difficult to effectively regulate cryptocurrencies within a region or a country because they don't have any borders and most of them are decentralized. The banker says that they must be regulated at the international level with local regulators coordinate their efforts together.

He thinks that it is possible to achieve this goal only if financial regulators of major countries will arrange a special event where they will discuss this matter.

Wuermeling said at an event in Frankfurt:

"Effective regulation of virtual currencies would therefore only be achievable through the greatest possible international cooperation, because the regulatory power of nation states is obviously limited".

In Europe, general attitude towards cryptocurrencies is skeptical, although financial authorities of European countries are not that radical, as Asian regulators. For example, Chinese authorities banned crypto exchanges and South Korean authorities are discussing the same measures to limit their impact on national economies. European authorities in turn don't think that cryptocurrencies pose a threat to the financial system. President of European Central Bank Mario Draghi said in November 2017 that an cryptocurrencies' influence remain limited, therefore they can't impact states' economies in a bad way. 

As for Germany, the largest commercial bank of the country Deutsche Bank included Bitcoin in its list of major market threats in 2018.

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