Traditional Currencies are irreplaceable, says German Finance Minister.
Olaf Scholz the German finance minister doesn’t believe that cryptocurrencies will be able to replace the traditional currencies in today's times, Cointelegraph auf Deutsch.
"I doubt that in today’s time, this currency cannot fit in the model of the original currencies of the country, " said Scholz at a “citizens dialogue” at the German-Dutch Army Corps in Münster. Scholz made a comparison between cryptocurrencies and tulip fever bubble which grew in the Netherlands in the 17th century, an old saying: "and the danger is great that there'll be such a tulip inflation."
Scholz added to the above statement by saying that the mandatory computer processes for the mass implementation of cryptocurrencies are very extravagant and energy-intensive that it couldn't work, and however wished to speak for future which would be in “20 to 30years.”
According to Scholz, cryptocurrencies ought to be closely ascertained by its regulators, as they have high chances of being used for illegal purposes like terrorist finance, concealing or different criminal activities. He even told that “…we don't believe, they have already got an economical significance in the current period.”
European legislators have met for several in the past few weeks so as to debate about their point of views over cryptocurrencies and conclude to the potential remedies to issues in relation to the digital assets.
On September 4, members of the European Parliament discussed rulings regarding the Initial Coin Offerings (ICOs), which were “very interesting and promising vehicle instruments” for raising capital, which needed more regulative oversight in the views of the many European legislators.
At a recent meeting of the Economic and Financial Affairs Council in Vienna, European Commission’s Vice President Valdis Dombrovskis declared that
the currency needs more regulation. While noting for the crypto is “here to stay,” Dombrovsksis stressed that European Union (E.U.) will have to concentrate on the development of crypto asset classification and regulatory mapping.
Prior to the meeting, a report was given by Belgian company Bruegel urging European regulators to adopt uniform laws on cryptocurrencies at the E.U.-level. The report notes that while the laws are left to national entities, there's an opportunity for “regulatory arbitrage” for crypto businesses.
-by Sindhuja Goyal.