- The regulator welcomes the crisis in the cryptocurrency market
- Allegedly, this made it possible to stop the growth of this industry without the intervention of the Central Bank.
The protracted recession, also known as the “crypto winter”, has been a real test for the industry in the past year. Many promising startups have closed because they entered the market at the wrong time.
But, apparently, this did not affect everyone. Some counterparties were even able to benefit from the situation, such as the Central Bank of Belgium. Manager Pierre Wunsch notedthat crypto winter has become a “gift” for regulators around the world.
Like some other departments, the Central Bank of Belgium is concerned about the increase in demand for cryptocurrency. Wunsch noted that digital assets pose a danger to the traditional financial system.
“The collapse in the cryptocurrency market ultimately happened on its own without affecting the rest of the ecosystem. And this is great news. The problem was solved without our intervention.” the manager noted.
Quite expectedly, Wunsch considers cryptocurrencies to be “a speculative tool.” And he compared the surge in demand for them with the financial bubbles of the past.
At the same time, according to the manager, the Central Bank “has no right” to take a neutral side when it comes to cryptocurrencies. In fact, Belgium’s financial regulator welcomes last year’s recession.
This perfectly shows the attitude towards cryptocurrencies in most countries of the world. Such a cynical comment is even more surprising because it came from the “neighbor” of France, which has previously welcomed blockchain-based innovation.
However, this is easily explained by Belgium’s dependence on the traditional financial sector. This is a “tax paradise”, a quiet “haven” for capital. Therefore, any blow to this system will affect the country in many times greater volume.
