Minister of Finance of Germany is not sure in the capability of digital currencies to replace traditional ones at the moment
According to Cointelegraph report from September 18, Olaf Scholz, a Minister of Finance of Germany is not confident that it is possible to refuse from using traditional currencies today and exchange them for crypto coins.
Scholz doubts in the perspectives of cryptocurrencies and draws parallels with the tulip fever bubble mentioned in the saying dating back to the 17th century.
He supposed that it would cost a fortune to implement digital coins in masses and organize corresponding computer processes. Moreover, it would be so intensive in energy use that the chances it would work well are minimal. At the same time, he is not ready to predict what will be in 20 or 30 years as well.
Scholz also insists on the necessity of their close observation by regulators because there are chances that digital coins may finance terrorists, launder money or be involved in other crimes. He also explained that experts could not say about their current economic significance as well.
The problems of cryptocurrencies and their possible solutions were also discussed by European legislators at the meetings held recently.
On September 4, there was a meeting of the EU parliamentary members who were speaking about regulations for ICOs. The latter ones were called an interesting and promising instrument to earn money, but there is a necessity of a better regulatory oversight too.
Another claim about a necessity of further regulation was made by European Commission Vice President Valdis Dombrovskis. He noted that in the nearest future cryptocurrencies would not disappear, so EU would pay attention to the creation of crypto asset classifications and regulations.
This boost was made by a report of Bruegel who offered to make cryptocurrency regulations in EU countries uniform. In other case, the opportunity of regulatory arbitrage in this business remains very high.