ECB President Christine Lagarde thinks that cryptoassets and decentralized finance DeFi could be a real risk to financial stability.
Lagarde says that the rise of crypto-assets could cause significant disruption in the financial system.
The links between cryptocurrencies and legacy finance are still limited. The Central Bank says it’s currently in the “early stages” of figuring out which crypto-related firms it should scrutinize for possible money-laundering activities.
The ECB is working to accelerate the spread of the MiCA framework.
The comprehensive regulatory framework is expected to be implemented in 2024.
It is not coincidence that all Central economical institutions are not fond in crypto, because its decentraliised nature, also the Bank for International Settlements (BIS) is still critical of crypto and they released annual economical report in a detailed 41-page of its Annual Economic Report, where they declared that “structural flaws make the crypto universe unsuitable as the basis for a monetary system,” arguing that systems built around central banks offer more stable and interoperable services.
Further BIS stated its interest in incorporating cryptos’ innovations in the fields of programmability, composability and tokenization into the programming of future CBDCs, interoperability to roll out within the next 24 months.
These are the tools that Government can use with CBDC:
Freeze account, put limit on your account, set location limits, spend limit, automatically tax every transaction, decide what you can buy or how to spend, restrict individuals from basic goods and services, set expiry date on savings and other features.
World is in transforming in to more centralised control, it’s not coincidence that more than 90% of Central banks are working hard on releasing their own CBDC’s, China was the first test for Digital ID, CBDC and credit social score, which are proven tools for total control on the people. Bitcoin is opposite of CBDC, it represents freedom, free will and the only way for financial freedom.