ECB Policymaker: Cryptocurrencies a “Fairy-Tale Story”

A European Central Bank (ECB) policymaker considers digital currencies to be a “fairy-tale story.” He has also given his negative stance on the matter, citing cryptocurrencies as a “complete load of nonsense” in spite of the bank’s stand on the technology.

Ardo Hansson, governor of Estonia’s central bank and European Central bank policymaker, candidly expressed his opinions on cryptocurrencies:

“The bubble has already started to collapse and maybe we should just see how far this collapse goes, and what is left when we’ve reached a new kind of equilibrium. […] I think we will come back a few years from now and say how could we ever have gotten into this situation where we believed this kind of a fairy-tale story.”

According to a Bloomberg report, the policymaker has also given authorities warning, citing the possible use of cryptocurrencies for illicit activities and the importance of protecting investors.

On the other hand, ECB’s stand on the cryptocurrencies seems to conflict with Hansson’s negative position on the matter.

Even though the bank has recently dropped its plans of having a central bank digital currency (CBDC), it hasn’t really dismissed a negative stance on the matter.

In fact, ECB president Mario Draghi said that cryptocurrencies could broaden the scope of economic actors.

“In principle, a central bank digital currency could meet demands for both the security and digitalisation of the economy. It could also allow monetary policy to reach a wider range of economic actors more directly,” explained Draghi.