ECB stated that cryptocurrencies represent only a limited threat to financial stability.

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According to the latest estimates of the European Central Bank, due to infrequent use of cryptocurrency as a payment instrument, they carry only limited risks for financial stability.

In the latest report, the ECB said that as the global economy restores, there is a resumption of interest in cryptoactivities and price increases. Although initially they received support only from retail investors, over time, some institutional organizations and non-financial institutions also began to use them in their activities.

The Bank’s economists note that high volatility makes Bitcoin with a risky and speculative tool, the consumption of a huge amount of electricity has a negative impact on the environment, and the possibility of use in illegal purposes is the concern of regulators.

At the same time, the ECB document further indicates that, since cryptoaculations are still rarely used for payments and have a weak impact on commercial institutions, then they are currently carrying limited risks for financial stability.

Since last year, the European Union has been developing a new regulatory framework for cryptocurrency regulation and

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