German central bank official says cryptocurrencies do not pose a threat to financial stability

The Central Bank of Germany’s Burkhard Balz, a representative commented that cryptocurrencies do not pose a threat to financial stability, he was speaking at the European Parliament, covered via a post published on the institution’s website. 

Burkhard Balz, Member of the Executive Board of the Deutsche Bundesbank said that:

Crypto-tokens currently do not pose a risk to monetary or financial stability.” Furthermore, he also noted that “gaps may occur where they fall outside the scope of regulators’ authority or where there is an absence of international standards.

Additionally, Balz did warn that any surge in the popularity of digital assets warrants close scrutiny. However, he expressed high expectations for the digital transformation from the likes of; artificial intelligence, distributed ledger technology, and cloud services, saying:

We are not talking about “evolution,” about banking adapting to the wants and needs of a digital generation – we are talking about a true “disruption” that may change the financial sector for good.