The head of the Bank of Finland criticized cryptocurrencies

The head of the Bank of Finland criticized cryptocurrencies

The head of the Bank of Finland criticized cryptocurrencies< /p>

Cryptocurrency prices are inflated by “monetary misconceptions” and conspiracy theories, while CBDCs are immune to volatility and can be trusted unconditionally. This was stated by the head of the Central Bank of Finland, Olli Rehn, writes CoinDesk.

“Someone joked that the national digital currency is the solution to the problem. I am not a fan of them, but I am convinced that detractors unfairly downplay the potential merits of the CBDC,” he said.

Ren drew attention to the potential risks of moving to a more digital economy in the context growth of crypto markets over the past five years.

The manager expressed the opinion that the high volatility of such assets is only partly due to the influence of monetary policy.

“Central banks need to prepare for the moment when convertibility to CBDC is required. We must remember that reliable and secure access to central bank money is the foundation of price and financial stability,” he explained.

Ren reiterated the ECB’s position that the digital euro will guarantee that the agency will remain as the anchor of the EU monetary system.

Earlier, the regulator pointed out that the success of the CBDC depends on the degree of its adoption.

Recall that the initiative to issue a digital euro arose in November 2019. In October 2020, the ECB published a comprehensive report on this topic. 

In May 2022, Fabio Panetta, a member of the board of the regulator, allowed the issuance of CBDC until 2026.

Later, the official said that the ECB will limit the issuance of digital euros at the level of 1.5 trillion.

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