ECB Executive Suggests Gambling Regulations For Crypto Speculation

Fabio Panneta, a member of the ECB board, believes that authorities should regard trading in unbacked digital assets as gambling.

According to Panetta’s blog post, cryptocurrency investments are a risk presented as a financial asset.

He claims that they serve no beneficial social or economic functions. They are rarely used for payments and do not fund consumption or investment. As a form of investment, unbacked cryptos lack any intrinsic value, too. They are speculative assets.

Panetta disagrees with other total payments specialists at the European Central Bank who have written off bitcoin as a marketing gimmick that will eventually disappear and shouldn’t be given legal approval.

He claims that people have always gambled in a variety of ways.  And it’s conceivable that unbacked cryptos will still be used for gambling in the digital age.

According to him, regulation has to recognize the speculative nature of unbacked cryptos and treat them like gambling endeavours.

According to him, vulnerable customers should be safeguarded using guidelines as the European Commission suggested for online gaming. They ought to pay taxes that reflect the expenses they place on society.