BitcoinExchangeGuide reported that European Central Bank president Mario Draghi said cryptocurrency and stablecoins cannot replace fiat money. As for Libra, he said the digital currency has the potential to be used as the means for payment settlements.
Crypto money cannot replace fiat
Draghi also said that the European System of Central Banks (ESCB) is monitoring the cryptocurrency market overall. Moreover, the authorities will regulate the technology in line with financial policy, market infrastructure, financial security, and payments.
In the view of Draghi, there is a limit to the use of crypto coins. He said the coins cannot replace fiat money like USD or Euro.
The technology has been growing fast and changing. Draghi Insisted that Libra has enough potential for the means of settlements in the retail businesses to corporate businesses.
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Challenges and opportunities
The ESCB and Draghi are studying the opportunities and disadvantages of creating central bank digital currencies, and in this case, the EuroCoin.
Draghi said the main challenge is not the technology, but its application. He added that they are looking into whether the pros of a shift to using cryptocurrency will outweigh the costs of doing so.