Mário Centeno’s Stance on Crypto Regulation
Mário Centeno, the governor of Banco de Portugal, has recently voiced his concerns about the future of cryptocurrency regulation during his keynote speech at the 2023 Banco de Portugal Financial Stability Conference. On October 2, he stressed that national efforts alone would fall short without a solid global framework to support them. And, let’s face it, nobody wants another case of regulatory whack-a-mole—just when you think you’ve nailed it, it pops up somewhere else!
The Call for International Cooperation
In his address, Centeno made it clear that global cooperation is essential for creating a robust regulatory framework that can handle the “undeniable risk” associated with crypto assets. He stated,
“It would be short-sighted to believe that regulating and supervising these global risks and international players at the national level will suffice.”
This highlights a critical point—crypto doesn’t recognize borders, much like that friend who shows up uninvited at every party.
The Risks of Crypto Assets
While some see digital assets as the future of finance, Centeno is less convinced of their longevity and democratizing potential. He remarked on their meteoric rise during the COVID-19 pandemic, which, let’s be honest, was a bit like giving a kid unlimited candy and expecting it to end well. He further added,
“These volatile products experienced an enormous surge in popularity during the pandemic but proved to be unsustainable.”
And just like that, several crypto products collapsed before our very eyes—somewhat like my hopes of getting rich off memes!
A European Approach: MiCA Regulations
While praising the European Union’s sweeping Markets in Crypto-Assets (MiCA) regulations as a good first step, Centeno stressed the need for expanded international regulatory collaboration under the principle of “same risk, same regulation.” After all, if a tree falls in the forest of decentralized finance and no one’s around to hear it, does it make a sound? Probably not, but you’d better believe it’s making regulatory noise somewhere!
A Global Chorus for Regulation
Centeno is not alone in his sentiment. Recently, Rupert Schaefer, the executive director of strategy, policy, and control at the German Federal Financial Supervisory Authority, echoed similar thoughts, emphasizing the inconsistencies present on a global scale. Even Indian Prime Minister Narendra Modi jumped on the bandwagon, calling for the same during the G20 summit. It seems the world is finally realizing that cryptocurrency regulation is a team sport, and everyone needs to play together!
In the end, as crypto continues to evolve, so too must our approach to regulating it. After all, without a global strategy, we might just be shooting in the dark with a slingshot—a lot of effort for minimal impact. So, let’s unite and create a framework that’s as sturdy as a brick wall, not as fragile as a sandcastle!
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