ECB’s Fabio Panetta says cryptocurrencies are like gambling, and hold no societal benefits.

According to Fabio Panetta, a board member of the European Central Bank (ECB), cryptocurrencies don’t provide any benefits to society and should be considered a form of gambling. In a recent speech at the Bank for International Settlements (BIS), Panetta stated that cryptocurrencies like Bitcoin and Ethereum lack intrinsic value and trust as they are not backed by any central authority or institution. He also claimed that they are highly volatile and unsuitable as a means of payment. Panetta drew a comparison between the risks of gambling and the nature of cryptocurrencies, warning that unregulated cryptos could be used as a means of gambling. He suggested that policymakers should regulate the industry and subject it to rigorous standards. Panetta also emphasized that regulating crypto should not be seen as a way of legitimizing it. Instead, the same regulation should be applied to minimize the risks for investors. He urged for globally coordinated regulation of all crypto activities, including decentralized finance (DeFi) and self-custodial wallets, to avoid the sector becoming a threat to financial stability. Despite the efforts to regulate crypto in the EU with the new MiCA regulations, Panetta believes there is still a lot of work to be done.