Verana Ross, chairwoman of the European Securities and Markets Authority, said that the current economic situation, characterized by high inflation, could serve as a catalyst for increased investment in bitcoin.
The official warned that given the likely growth in the use of bitcoin, the European Union needs to be prepared to regulate it.
In the context of rising inflation, investors will look for tools that can compensate for inflation and generate large profits, which can increase the riskiness of investments. It’s something we’re watching very closely,” Ross said.
The Chair called for a unified European approach to cryptocurrency regulation to improve the existing structure, which relies heavily on national laws. Now, according to Ross, there is an imbalance among regulators.
Currently, the ECB is among the leading organizations in terms of regulating cryptocurrencies. Discussions about the need for regulation escalated after the collapse of the Terra stablecoin, as a result of which millions of investors suffered significant losses.
Amid increased scrutiny of regulation, the crypto market has been trading in the red for most of 2022, with bitcoin struggling to hold above the $30,000 mark.
Despite the price correction, the number of cryptocurrency holders in Europe has grown: the ECB report shows that about 10% of households in the eurozone own cryptocurrencies.
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