ECB tells how to counter Bitcoin

The European Central Bank proposes to introduce instant payments to counter cryptocurrencies
01 December 2017   1613

The way to defeat Bitcoin attractiveness

Yves Mersch, a member of the Executive Board the European Central Bank, said on Thursday that banks should accelerate the introduction of instant payments to counter the attraction of cryptocurrencies like Bitcoin.

Banks need to implement instant payments as soon as possible and provide an alternative narrative to the ongoing public debate on the alleged innovation brought by virtual currency schemes.


Yves Mersch

Member of the Executive Board, the European Central Bank

The growing interest of central banks

Cryptocurrencies have gained relevance in the financial debate and some central banks such as Sweden’s Riksbank and the Bank of England intend to introduce their own digital currency.

According to Yves Mersch, the ECB is interested in experiment with cash on different digital technologies, but it does not see scope for implementation of such technology.

Bundesbank board member Carl-Ludwig Thiele agrees with Mersch opinion, saying that a digital currency such as Sweden eKrona could not be introduced in Germany, where cash payments are still prevalent.

Despite the progress of adoption, cryptocurrencies are still a source of worry for central bankers because they threaten their control of the banking system and money supply, which could undermine the monetary policies they use to manage inflation.

Bakkt to Unveil Bitcoin Futures Test Date

Along with date announcement, COO Bakkt believes the platform will attract institutional investors and set new standards for the cryptocurrency market
14 June 2019   236

The Bakkt cryptocurrency platform has named the exact start date for testing Bitcoin futures. The first users will be allowed to test the tool on July 22.

According to Bakkt's Operations Director, Adam White, the platform will attract institutional investors and set new standards for the cryptocurrency market.

White pointed out that the wider distribution of cryptocurrencies, in particular, is hampered by unreliable pricing mechanisms and the likelihood of instantly falling rates.

Along with these problem-solving solutions that are new to digital asset markets, Bakkt also brings all the other features that institutions would expect in a versatile and broadly accessible market, including: block trades; a fee holiday through the end of the year to encourage trading; market maker incentive programs to encourage liquid markets; and integrations with ISVs and regulated brokerage platforms.

Adam White

COO, Bakkt

At Bakkt, two futures contracts will be presented - with daily and monthly settlements. Risk management and the securing mechanism for these contracts will meet the standards of the traditional derivatives market.