EU Commission Concludes Blockchain Technology Holds Strong Promise

Bitcoin and other cryptocurrencies have attracted a growing number of investors, especially since their value began skyrocketing shortly before Christmas 2017. Speaking to the press following a roundtable discussing the challenges and opportunities of crypto trading, Mr Dombrovkis had some positive remarks regarding the growing technology and also issued some warnings.

EU financial services commissioner Valdis Dombrovskis said bitcoin and other cryptocurrencies do not have a “guaranteed value” and should come with a “clear and frequent” warning to investors in order to safeguard them from possible risks to their investments.

Mr Dombrovkis warned that speculation could pose risks to investors, suggesting the European Union stands ready to regulate cryptocurrencies in months to come.

He said:

“Cryptocurrencies – which are not currencies in a traditional sense and whose value is not guaranteed – have become subject to considerable speculation: this exposes consumers and investors to substantial risk, including risks to lose their investment. This is why our conclusion is that warnings about those risks to consumers and investors are important and must be clear, frequent and across all jurisdictions.”

Mr Dombrovkis contiuned:

“We do not exclude the possibility to move ahead by regulating crypto-currencies at the EU level if we see, for example, risks emerging but no clear international response emerging.”

The EU Commissioner suggested Brussels recognised the technological importance of the structure driving the trade of bitcoin and other cryptocurrencies – the blockchain.

He said:

“We concluded that blockchain technology holds strong promise for financial markets and to remain competitive Europe must embrace this innovation.”