Chairman of the European Central Bank (ECB) Mario Draghi said that the regulator is studying the potential risks that crypto currencies represent for the financial stability of the banking industry. However, according to the ECB, banks are not interested in bitcoin investments. This is reported by Reuters.
We are not observing a systematically relevant holding of digital currencies by supervised institutions. Actually, credit institutions ... are showing limited appetite for digital currencies, like Bitcoin. We should understand that Bitcoin and other digital currencies are in the unregulated space and should be regarded as very risky assets. Banks should measure the risk of any holding of digital currencies in their portfolio accordingly.
Chairman, European Central Bank
Due to the lack of regulatory and legal framework and regulation in the crypto-currency industry, digital currencies are "high-risk assets". According to Draghi, banks should take this into account when including cryptocurrency in their investment portfolios.
Previously Mario Draghi questioned the maturity of the industry and its readiness for government regulation.
Nevertheless, the chairman of the ECB is convinced that financial and technological innovations should be closely watched by regulatory bodies in the context of potential risks.