Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » Will the ECB Ever Embrace Cryptocurrency and Blockchain?

    Will the ECB Ever Embrace Cryptocurrency and Blockchain?

    npsBy nps12 October 2017Updated:26 June 2024 No Comments3 Mins Read
    — Filed under: Focus
    Share
    Facebook Twitter LinkedIn Pinterest Email

    With Bitcoin surpassing a historic $5000 today, cryptocurrency remains a major talking point in the financial marketplace, particularly as Bitcoin continues to benefit from increased regulations and a larger number of viable applications.

    So while China may have taken the decision to ban initial coin offerings pertaining to Bitcoin and similar digital currencies, the attitude in Europe remains far more relaxed. Banks have been reluctant to embrace the technology, however, in the fear that cryptocurrency and underlying innovations such as blockchain will destabilise the financial markets.

    The questions that remain are whether or not this represents an oversight, and whether the European Central Bank (and similar institutions) will take advantage of cryptocurrency technology?

    The Changing Financial Landscape and How Banks Should Adapt

    Ultimately, the fears about disruption have been largely unfounded, primarily because fintech innovations such as Bitcoin have failed to change the basis for competition in regulated markets. Instead, these technologies have triggered a marked improvement in customer service, while reducing commission costs and the value of payments.

    This means that rather than struggled with sustained volatility and disruption, early adopters of this technology (namely non-banking financial lenders and peer-to-peer platforms) have been able to target profitable areas of operation and leave banks in a position where their margins are squeezed. Beyond this, the service, usage and financial advantages delivered by cryptocurrency could begin to make banks appear out-dated, causing them to lose custom and long-term revenues.

    Bitcoin has also transformed the way in which banks consider regulation, as more stringent rules and guidelines have helped the product to gain traction in various markets. Historically, bankers believed that regulatory measures made financial services unappealing for new entrants and innovators, but this is no longer the case. Instead, regulation lends credibility and viability to concepts such as Bitcoin, and this is something that banks will ultimately have to get to grips with.

    Why Central Banks will ultimately be forced to Leverage Cryptocurrency

    Ultimately, the rise of cryptocurrency and similar technologies will make banks less relevant and profitable over time. To avoid this, banks must surely act now, and take steps to integrating blockchain and even establishing a regulated, cryptocurrency exchange market. This would run alongside classic financial entities such as the forex market, creating greater flexibility for traders and making diversification easier than ever.

    Remember, banks have already seen their importance diminished by the rise of asset managers, who themselves have leveraged technology to provide a flexible and affordable financial service to clients. These types of service were once exclusive to banks, but as technology has changed so too customers have been encouraged to change their behaviour.

    If this trend is not to be continued in other areas, banks will need to proactive and visualise the role of Bitcoin in the future.

    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    nps
    • Website

    Related Content

    EU agenda - Image by Andreas Lischka from Pixabay

    EU Agenda: Week Ahead – 19-24 May 2025

    Euro coins and notes - Photo by Pixabay

    Eurozone Economic Calendar

    Euro - ECB-Photo by Mika Baumeister on Unsplash

    Pound rallies as sentiment improves – Euro currency news daily

    TikTok - Image by Stefan Coders from Pixabay

    TikTok ads system ‘breaking EU’s online content rules’

    Greenhouse gas - Image by Karl Egger from Pixabay

    EU economy’s greenhouse gas emissions rose 2.2 pct in Q4 2024

    Farming tractor - Photo by Jannis Knorr on Pexels

    MEPs tighten screw on Russian and Belarusian agricultural goods

    LATEST EU NEWS
    Euro - ECB-Photo by Mika Baumeister on Unsplash

    Pound rallies as sentiment improves – Euro currency news daily

    16 May 2025
    TikTok - Image by Stefan Coders from Pixabay

    TikTok ads system ‘breaking EU’s online content rules’

    15 May 2025
    Greenhouse gas - Image by Karl Egger from Pixabay

    EU economy’s greenhouse gas emissions rose 2.2 pct in Q4 2024

    15 May 2025
    Farming tractor - Photo by Jannis Knorr on Pexels

    MEPs tighten screw on Russian and Belarusian agricultural goods

    15 May 2025
    Business accounting - Photo by Mikhail Nilov on Pexels

    New EU approach to VAT for e-commerce imports to simplify trade and compliance

    14 May 2025

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness Ltd 117 High Street, Chesham Buckinghamshire, HP5 1DE United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Privacy Policy
    • Terms
    • EU News

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2025

    Design and developed by : 

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?