ECB’s Knot: Strong Regulation Necessary to Realise Crypto Assets’ Benefits
29 February 2024
By Isabel Teles – FRANKFURT (Econostream) – European Central Bank Governing Council member Klaas Knot on Thursday said that a strong and consistent regulatory system was necessary for crypto assets’ benefits to be completely realised.
In a speech at the ASIFMA Annual Conference, a text of which was posted to website of the De Nederlandsche Bank, which he heads, Knot said that ‘the full benefits of digital innovation stemming from crypto assets can only be realised if there is durable trust in the sector. For this, we need to keep working on a strong and consistent regulatory system, to safeguard financial stability.’
The crypto ecosystem was a complex one and it should not be assumed that the financial system would largely benefit from its innovation and decentralisation, he said.
‘It is thus essential that we keep opting for fitting regulation. At the same time, let me be clear: opting for regulation is not a stamp of approval’, he said. ‘Investing in crypto remains a risky and volatile business, illustrating that our work is not done yet.’