Just as the entire market seems to stabilize and get in the green zone, rumors that the market will be shaken, are in the crypto news again because the Finance Minister of Germany, Olaf Scholz claims that cryptocurrencies aren’t eligible to replace traditional fiat currencies.
Mr. Olaf briefly said:
‘’ I would doubt today, whether it has a perspective as a currency model.’’
He also made a comparison between cryptocurrencies and the tulip fever bubble that happened in the Netherlands back in the 17th century said that this is a much bigger stake in the game and that the danger of such tulip inflation is far greater.
He addressed that the main issue is the incredible amount of energy computers use to process crypto transactions and also the costs that occur with that spending. The process is highly energy-intensive, but as a matter of fact, he was not happy to explain his views about this issue in 10-20 years time.
According to Scholz, regulators should be over their heads with work trying to regulate and observe cryptocurrencies since they are the perfect tool for money laundering and financing terrorism. He also noted that cryptocurrencies don’t really have any kind of economic significance today.
Just a few weeks ago, European legislators met in order to share their concerns over cryptocurrencies and also the possible solutions that can be applied to problems with digital currencies. They also discussed the possible regulation of ICOs saying that they are a very interesting instrument for raising capital. They all agreed that crypto needs further regulation and that regulation is in the best interest of cryptocurrencies.
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