ECB Recommends Mining Ban and Urgent Stablecoin Regulations #togrp7
It comes as no surprise that the central bank wants to curtail crypto as much as it possibly can, advising EU lawmakers with a recent research paper. On July 12, crypto venture advisor at Presight Capital, Patrick Hansen, broke down the report, which focused primarily on what the ECB considers financial risks.
It acknowledged that the digital asset markets were evolving rapidly, claiming that if current trends continue, “crypto-assets will pose risks to financial stability,” therefore need to be “effectively regulated and supervised.”.The first concern was one regarding the climate, with the report stating that there is a choice between “incentivizing the crypto version of the electric vehicle” or banning the fossil fuel version. This refers to the choice of proof-of-stake, which Ethereum is about to switch to, instead of proof-of-work, which runs the Bitcoin network.