{"id":7206,"date":"2018-07-11T00:00:00","date_gmt":"2018-07-11T00:00:00","guid":{"rendered":"https:\/\/crypto-economy.com\/2018\/07\/11\/the-future-of-cryptocurrencies-eu-researchers-perspective\/"},"modified":"2018-07-11T00:00:00","modified_gmt":"2018-07-11T00:00:00","slug":"the-future-of-cryptocurrencies-eu-researchers-perspective","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/the-future-of-cryptocurrencies-eu-researchers-perspective\/","title":{"rendered":"The Future of Cryptocurrencies: EU Researchers perspective"},"content":{"rendered":"
The committee of the European parliament held another monetary dialogue during the late hours of 9 July, 2018.<\/strong> The dialogue is a quarterly conference which mainly involves a European Union monetary policy report from the president of the European Central Bank(ECB).<\/p>\n Based on the ECB’s statements concerning cryptocurrencies in recent years, the organizations standpoint seems to be changing as cryptocurrencies are establishing a solid foothold in the financial space<\/strong>. A quick backward time travel to last year leads us to a point where the ECB was reluctant to get involved in cryptocurrency issues, as we witnessed the ECB president openly stating that cryptocurrencies<\/a> <\/strong>weren\u2019t a thing “in their powers to prohibit and regulate.”<\/em><\/strong> This denounced any intention of influence from the EU. However, recent statements showed an inclination and openness to discuss cryptocurrency issues as shown through its recommendation to European Banks to segregate their crypto activities from traditional practices.<\/p>\n Since the inception of the monetary dialogs in 2012, any topic related to virtual currencies wasn\u2019t given a separate space for discussion until the most recent session held on the 9th of July. The panel discussed the topic titled: ”Virtual Currencies and Central Banks Monetary Policy: challenges ahead.”<\/em><\/strong> The panel used briefing papers from renowned individual researchers and institutions to lead it through the crucial aspects of the discussion.<\/p>\n <\/p>\n The following are the general arguments of the papers and how they can possibly effect on the European Central Bank\u2019s overall standpoint concerning cryptocurrencies. However, it is important to note that the arguments and the views expressed in the papers should not be seen as the official standpoint of the ECB or the EP.<\/strong><\/p>\n The first report was from Lukasz Janikowski and Marek Dabrowski<\/strong> and it came under the title “Virtual currencies and central bank\u2019s monetary policy: challenges ahead.\u2019\u2019<\/em><\/strong> The two researchers hail from the Center for Social and Economic Research which is a standalone economic and public policy research institution, headquartered in Warsaw, the capital of Poland.<\/p>\n The dominant message from the paper highlights the virtual currencies enormous technological advantage<\/strong> which include extremely more affordable and fast transactions which evade the limitations placed by international borders. The paper says that, ”Unlike their 18th and 19th century paper predecessors, VCs are used globally, disregarding national borders.\u201d<\/em><\/strong><\/p>\n On a slightly negative side, the paper acknowledged that just like traditional money, VC’s are not infallible and it clearly highlights the challenges that come with using cryptocurrencies.<\/p>\n \u201cVCs should be treated by regulators as any other financial instrument, proportionally to their market importance, complexity, and associated risks. Given their global, trans-border character, it is recommended to harmonize such regulations across jurisdictions. Investment in VCs should be taxed similarly to investment in other financial assets.\u201d<\/em><\/p>\nVC’s are bound to be part of the future and should be embraced while being kept under regulation.<\/strong><\/h3>\n