🧵 Crypto-assets have become the bubble of a generation, says Executive Board member Fabio Panetta at the @LBS's Insight Summit 2022.
Crypto-assets are not money. Many are just a new way of gambling
https://www.ecb.europa.eu/press/key/date/2022/html/ecb.sp221207_1~7dcbb0e1d0.en.html
1/4
Panetta: The risks of crypto finance stem from three main flaws:
1️ Unbacked crypto-assets offer no benefits to society
2️ Stablecoins are not as stable as they claim to be
3️ Crypto markets are highly leveraged and interconnected
2/4
Panetta: The digital finance ecosystem needs an anchor of stability in the form of a digital risk-free asset, which only central bank money can provide.
That is why we are working on a digital euro and the future of wholesale settlement using central bank money
4/4
Panetta: There's an urgent need for regulation to protect consumers, define risk management and corporate governance, and reduce the contagion risks of stablecoins.
We should tax crypto-assets according to their social costs, including tax evasion and environmental impact
3/4
🐦🔗: https://n.respublicae.eu/ecb/status/1600500299105533955