ECB predicts fall of Crypto Market in future

As per a leading news agency, Bloomberg, a senior officer of the European Central Bank (ECB), Governing Council has reportedly warned of the fall of cryptocurrency in recent future which started as a bubble a decade ago. After a few years of going very strong in the market, it is gradually collapsing as per a recent market trend analysis.

Ardo Hansson who heads the position of the governor of Estonia’s central bank stated at a conference in Latvia that crypto cloud which has been a boom so far would eventually vaporize. The officer stated that the so-called crypto bubble is already on the verge of collapsing and the need of this hour is to watch the extent of this collapse and the leftover once an equilibrium is reached.

He reiterated on the point that there should be some kind of protection of the interest of the investors, investing in digital currency and preventing them from channelizing their investments into illegal activities. The governor of the central bank also shared his growing concerns of instability as per as the financing is concerned, given the ever-growing connections between the regulated traditional financial sector and digital assets.

As reported earlier, there was heavy criticism from the President of the European Central Bank, Mario Draghi and the policymaker of ECB supported it. Draghi represents the Estonian national cryptocurrency body, Estcoin. Draghi was firm in commenting that there can’t be any member state who can introduce and operate its own currency and would have to diligently follow the only currency of the eurozone which is the euro.

Last year in November, Benoit Coeure who is the Executive Board member of the ECB also heavily criticized Bitcoin claiming that not many people remember what Satoshi Nakamoto did with the genesis block in January 2009 during bailout by banks in the United Kingdom. In some way or the other, Bitcoin is regarded as the evil breeder of the financial crisis.”

Satoshi Nakamoto is a pseudonym of either a person or a group of people who developed Bitcoin, authored its white paper and deployed Bitcoins original reference implementation. Satoshi published a paper, titled “Bitcoin: A Peer-to-Peer Electronic Cash System” in October 2008 and released the first software that launched the Bitcoin network in January 2009. The question of who Satoshi Nakamoto had still not been answered and had generated a lot of different theories and speculations.

Last September, Valdis Dombrovskis who is the Vice President of European Commission stated that EU would be looking forward to the overall growth and development of digital assets and its classification and regulation which actually is a contract to what Coeure stated earlier. Even Dombrovskis reiterated further that digital assets are here to play a long innings looking at the booming crypto markets even though the market has seen recent volatility.