Portugal Central Bank’s President Says Crypto Is Unsustainable

Banco de Portugal’s governor Mário Centeno has voiced concerns over cryptocurrency. At the 2023 Banco de Portugal Financial Stability Conference, he stated that the national endeavours to supervise cryptocurrencies would not operate adequately without a worldwide agenda. In the opening speech at the respective event, which took place on 2 October, Centeno supported international cooperation.

Banco de Portugal’s President Voices Support for Worldwide Crypto Regulation

He added that the respective cooperation would be significant in establishing a resilient agenda. As per Centeno, this would assist in avoiding the possibility related to regulatory arbitrage. In Centeno’s words, the current regulatory scenario is not very capable. He mentioned that nationwide supervision and regulatory efforts for the international players and worldwide risks are insufficient.

Further, he spoke on decentralized finance (DeFi) and crypto assets. He focused on the irrefutable risk concerning the unavailability of these assets in the future. The official revealed his scepticism concerning the digital assets’ democratizing potential and capability to eventually survive. The respective volatile products went through a massive elevation in fame during the time of the COVID-19 pandemic, Centeno added.

Also Read: Top 4 Tax-Free Countries For Crypto Investors In 2023 – A Beginner’s Guide

However, the official asserted, that this sector turned out to be unsustainable. The official thinks that this unsurprisingly resulted in the crash of many products. On the other hand, he celebrated the Markets in Crypto Assets (MiCA), the initial thorough crypto agenda of the European Union. Nonetheless, he insisted on the additional international consolidation regarding the regulatory endeavours concerning the same regulation principle and same risk.

Indian PM Also Stands In Favor of a Global Crypto Regulation

Rupert Schaefer, the German Federal Financial Supervisory Authority’s executive director of strategy, policy, and control also expressed the same sentiment. In his blog post, he acknowledged the development related to the crypto regulation in the EU with MiCA. But, he prompted about the irregularities on a worldwide scale. Back in August this year, Narendra Modi (the Prime Minister of India) also suggested worldwide collaboration for the regulation.