Cryptos Are the ‘Bubble of a Generation,’ ECB’s Panetta Says

12/07 17:30

Crypto-assets that promised radical change in how people pay, save and invest have turned into the “bubble of a generation,” highlighting the need for stricter regulation and risk management, according to European Central Bank Executive Board member Fabio Panetta.Bitcoin has lost some two-thirds of its value over the past year, rendering true an argument policymakers have long made: products like it are much too volatile to be considered currency. With the broader crypto industry in a tailspin after the recent collapse of FTX, calls are getting louder to find better ways to control it.“It is now obvious to everyone that the promise of easy crypto-money and high returns was a bubble doomed to burst,” Panetta said Wednesday in a speech in London. “It turns out that crypto-assets are not money. Many are just a new way of gambling.”
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