Using the Bitcoin bubble fear, EU financial leaders are gearing up to create regulations to insulate themselves from the fundamental threat of the rise of Bitcoin and other digital currencies.
If the Bubble fear tactic doesn’t work, they’re ready to follow that up with the money laundering by terrorists fear. It’s not a question of IF the EU will heavily regulate Bitcoin, but when, and how heavy a boot will they place on the neck of Bitcoin.
….banks are becoming more nervous that if the Bitcoin bubble does burst, the blame will be put at their doorstep as the currency was unregulated despite huge popularity.
Ewald Nowotny, a member of the ECB’s governing council who is also Austria’s central bank governor said: “Simply because of the scale, it is certainly increasingly necessary to discuss whether and in what form regulations are needed here.
“A particular aspect that needs to be discussed …is the question of how far the regulations on money laundering …are relevant here.”
He added the matter would be down to the EU not the ECB. Last week when the ECB was accused of overstepping its authority regarding its involvement in the prevention of banks handing out ‘non-performance loans’.
It was argued the EU should deal with this problem.
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