ECB Official Says Energy-Intensive Crypto Should Be Banned

Created By Fintech Team

If cryptocurrency assets need too much energy, they should be prohibited. 

Board member of the European Central Bank Fabio Panetta said 

Investors were seduced by the prospect of constantly growing prices and fell victim to the "textbook definition of a bubble."

He is making reference to the earlier event when he said that the uncontrolled industry was similar to a Ponzi scheme and the Wild West.

Panetta refers to cryptocurrency as a gamble—a risky activity that he wants to keep isolated from traditional finance, 

Despite the fact that the collapse of the cryptocurrency exchange FTX has shown problems in accounting & risk management.

He claims that cryptocurrencies are too unstable and ineffective to be used for everyday transactions.

These exchanges are likely to magnify financial shocks and will be more difficult to regulate.

The ECB's doubts about cryptocurrencies are not new.