Important news for the cryptocurrency community arrive from the ECB. The president of the European Central Bank (ECB), Mario Draghi, stated on February the 5th that European banks could hold positions in Bitcoin. Notwithstanding the several comments about cryptocurrencies that ECB president has given, he confirmed that European banks may have the intention to hold some positions in Bitcoin.
Bitcoin Reaches International Banks
The ECB’s president has several times commented about Bitcoin and other cryptocurrencies. But this time it was different, confirming the fact that banks are interested in this currency. Due to recent developments, like the listing of Bitcoin futures in the Chicago Mercantile Exchange (CME) and the Chicago Board Options Exchange (CBOE), banks may start to hold positions in the famous cryptocurrency.
“[…] recent developments, such as the listing of Bitcoin futures contracts by US exchanges, could lead European banks too to hold positions in Bitcoin, and therefore we will certainly look at that,” commented Mr Draghi during a statement at the European Parliament.
However, Mr Draghi explained that there is not an increased appetite for digital currencies, like Bitcoin, by European financial institutions. Furthermore, he explained that Bitcoin and other cryptocurrencies are unregulated and that they are very risky investments. Bitcoin and the market is very volatile and prices are subject to constant changes. In addition to it, cryptocurrencies are not related to a specific supervisory approach.
About that Mario Draghi said:
“One or two speakers touched on Bitcoin and other cryptocurrencies. Let me first say that we are not observing a systemically relevant holding of digital currencies by supervised institutions – by banks, in other words. Actually, the credit institutions established in the European Union are showing a limited appetite for digital currencies like Bitcoin.”
If banks start to hold and invest in cryptocurrencies, the market may receive an important influx of money. Bitcoin is by nature a deflationary cryptocurrency. If banks decide to invest important sums of money in this virtual currency, then its price may also experience a remarkable increase.