Fabio Panetta: "Cryptocurrencies turned into a pernicious class of assets" – Bits Media

Member of the Board of the European Central Bank (ECB) Fabio Panetta stated, that cryptocurrencies have turned from an innovative class of assets into a pernicious and suitable only for gambling.

During the annual conference of the Bank of International Settlements (TO) Fabio Pan (Fabio Panetta) noted, that the adoption of cryptocurrencies among investors as a “reliable means of savings” began to collapse at the end 2021 of the year. For 2022 year capitalization of the cryptorar collapsed more, than on $1 trillion, And everyone became clear "high -voltage" nature of digital assets, more suitable for gambling, than investments.

“Due to their restrictions, cryptocurrencies have become not an innovative and reliable form of finance, but turned into a detrimental. The cryptocurrency ecosystem is permeated with failures and is subject to negative external effects. She will certainly continue to encounter malfunctions and problems, If the necessary regulation measures are not taken. At the same time, politicians should be careful about the support of the industry, which has not yet benefited to society, but tries to integrate into the traditional financial system for that, to gain legitimacy as part of this system and use it ", - noted Panetta.

The official also emphasized, that participants in the cryptocurrency industry constantly come up with new “narratives” to attract investors, but, almost always fail them and do not fulfill their promises.

Panetta doubted the advantages of the blockchain, stated, that "security, scalability and decentralization "of cryptocurrency transactions" cannot be achieved ", And the invariability of blockchains is their minus due to the impossibility of cancel the transaction. He also reminded of the collapse of the FTX exchange.

Earlier, a member of the board of the ECB repeatedly opposed cryptocurrencies and investments in this class of assets.