Bitcoin Soars Back Above $4100 As ECB Admits "No Power To Regulate Cryptocurrencies"

Tyler Durden's picture

Cryptocurrencies are extending their post-China-crackdown gains, with Bitcoin spiking back above $4100 this morning. A number of catalysts have been posited, from chatter of Mike Novogratz new fund to talk of Japan's shift to virtual currency before the Olympics in 2020. However, most chatter revolves around Mario Draghi's admission that The ECB is powerless to regulate or prohibit cryptocurrencies.

Bitcoin is back at key support/resistance...


In fact, most of the crypto space is higher this morning...


As CoinTelegraph reports, Mario Draghi, the erstwhile president of the European Central Bank (ECB) made some startling comments during his presentation yesterday at the Hearing of the Committee on Economic and Monetary Affairs.

When asked about cryptocurrency regulations or bans, similar to the political decisions the Chinese central government has enforced, Draghi made it clear that there is no way to ban Bitcoin, or to even regulate it, saying:

“It would actually not be in our powers to prohibit and regulate them. We have to ask what effects cryptocurrencies have on the economy.”

He added that they are still far too immature to be considered a viable payment methodology - a conclusion that was reached by the ECB in tandem with the Central Bank of Japan last week.

Additionally, banks in Japan are considering creating a digital currency, the J-Coin, intended to eliminate cash as a payment option. CoinTelegraph reports that the news broke through an article indicating that the coin is being planned with the blessing of financial regulators for before the 2020 Olympic Games in Tokyo and is intended to streamline the financial system.

Recently, Japan has once again become the largest Bitcoin exchange market with 50.75 percent market share of the global Bitcoin exchange market.

But Japan is currently functioning as a 70 percent cash economy - a figure that by far exceeds most developed nations where digital transactions have taken the place of cash. These cash transactions create far more cost in the financial world than digital transactions.

The J-Coin is intended to function in tandem with the Yen, rather than replacing it. The coin would be exchanged at a one-to-one ratio. The service for the coin would be offered freely but would be a means of tracking transactions that is far more complex in a cash-based society.

The coin will likely see release in the coming years, though the infrastructure of the system is not yet clear. It may be based on Blockchain technology, but the specifics are as yet unreleased. Recent reports from the Bank of Japan indicate that it does not consider Blockchain technology ‘mature’ enough to handle transactions.

The suggestion of a government cryptocurrency falls in line with the idea that governments around the world are seeking to start their own proprietary cryptocurrencies.

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Theta_Burn's picture

The pumpers turn...


VD's picture

what's happening is clear as day.

Theta_Burn's picture

In the meantime people are making sick money.

I wish it was easier to get in/out.

Its the only volatility out there..

VD's picture

yeah, time to go all in J-Coin.


idiots make "sick money" all the time.

BaBaBouy's picture

5000 Flavours, All trying to be Money ...

bwh1214's picture

Bitcoin may have some unknowns but in this investment landscape, zero is not the correct allocation.
Video rebuttal to Chris Duanes challenge.

ilion's picture

Ever more retail brokers have also started to enable Bitcoin trading in their trading platforms. Just today, Tickmill, a UK FCA regulated broker for algorithmic traders announced that it has completed its acquisition of Vipro Markets ( and will enable also bitcoin trading to its close to 20,000 professional clients located in 185 countries. 

VD's picture

spoke w/ youngbuck JPM trader over weekend and he said he trades btc off the dips. he was laughing about it. everyone knows it's a joke save for the die-hard crypt0-zealots.

tmosley's picture

Horse drawn carriage manufacturer things automobiles are a joke, retards take their word, news at 11.

Government needs you to pay taxes's picture

The EU will manufacture a right to regulate.  Dont worry.

tmosley's picture

A right? Maybe. An ability? Highly doubtful. Others more competent than them have tried, failed, and embraced the technology instead.

malek's picture

Please give us examples for those "others more competent" that have tried and failed to regulate cryptocurrencies...

TheReplacement's picture

Good analogy but there is a counter.  A horse will usually outlive an auto and the upkeep is probably a wash.  If you have two horses you can breed them to create replacements.  In the end, you can eat the old horses. 

I guess it all depends on if you think cryptos will cause enough chaos to bring down the global financial system and the governments it maintains for control mechanisms.  What happens if governments and their central banks and their fiat currencies fall?  Will the power stay on?

Anyone claiming to know the answer to that is a liar.

Hedge accordingly. 

Ghost of PartysOver's picture

My Tin Foil Hat is speaking to me.  If a government agency says they can not regulate something then are they not inviting its use?  What dastardly plan do they have?  Demised of the hard currency, the notes and coins?  Are they herding the sheep into their trap?  If it is digital then any government agency can control it.  If by now other means then the internet on off switch.  Food for thought Puerto Rico.  Not sure electronic currency is working very well down there.  Not to mention a cash shortage.

Tsipras the Great's picture

Well, they (not ECB, Govs) can. But they won't.

That definitely means something. 


TheReplacement's picture

Maybe Mario is long bitcoin and talking it up so he can retire in style before the whole EU/Euro thing blows up.


Aireannpure's picture

Sick money with short term capital gains. Really?

TheReplacement's picture

Turning $500K into $2.5B is making sick money.

FreeShitter's picture

Yep clear as day, is that you no coiners whine too much. 

VD's picture

just become obese, get tatted all over and go on youtube and shill it vs being the real whiner up in here.


just imagine, you can sit on your fat ass all day staring at your kustom rig "mining" all them (insert flavor o' the month crypt0) "coins", stuffing ur gullet with doritos in between tattoo sessions = heaven on earth.

tmosley's picture

Peanutz think ad hominem is an argument.

Nature_Boy_Wooooo's picture

Meet me at the squat rack bruh.

VD's picture

bruh, goldz gym aint accepting btc. nor is my 'roidz dealer. what to do..

11b40's picture

Looks like the VD finally reached your brain cells.

Cash2Riches's picture

This is something that people in Crypto space have been saying for years. Central banks are a farce and have little power over anything, but their fiat systems. A new global system is coming and they know it, this will be one of the greatest changes we have ever seen in history.

The Wizard's picture

I would venture to guess a bunch of these ECB dudes and dudettes are sitting on bitcoins and ethereum until they wave their magic wand.

kahplunk's picture

Why the hell not the ero is going to be worthless.

Deep In Vocal Euphoria's picture

No shit because they want you filthy fucking sheep on that bitcoin......


how about that total control over your economy....


how about that mass spying......what you buy where you eat who you pay who you are getting paid by..............


fat fucking dumb docile westerner..............look at yourself......completely fucking neutralized...............


ha ha ha...A.I and dirverless cars........The human being heading towards its own destruction. And I love it............I hope I will still be alive to witness the total destruction and death of this soceity.........


you fat ugly fucking pigs........fucking crack your skull on the sidewalk..........yeah i got a bitcoin for you....................................


I got a selfie stick for you human.......right in the back of your fucking head how do you like that? 



FreeShitter's picture

Yeah he mad...broke as fuck and losing at life like his buddy VD

kahplunk's picture

it only hurts when the head pops in

Calfrope's picture need some pussy.... like I've always said ... the worst blow job I ever got was great....chill out ... take a pill....smoke a fat one....prepare the way you think it will end .... just saying

Vageling's picture

You forgot something. This guy can't get it up. I'd be frustrated too if I was in his shoes.

Golden Phoenix's picture

It's really sad when the former football star turns into an alcoholic, his wife leaves him, and he realizes the geeks he hated in high school won life and he can't make things better by beating the shit out of them anymore because he's already on probation.

Tugg McFancy's picture

No power. Government has the monopoly on violence.

VD's picture

he who has the violence mints the "coins" more at cons. btc is such the deep state setup. 4100 for pure speculation and NSA lovin' it.

Deep In Vocal Euphoria's picture

Keep pushing that AI technology human...ha ha ha..........the human being a suicidal creature.....i don't blame them............

Vinividivinci's picture

reminds me of charlie brown, lucy and a football...

silverer's picture

Now we can trade worthless paper for worthless zeroes and ones. I finally figured out why Bitcoin is the better deal. No government control. Which means Bitcoin, like gold and silver, offers something tangible after all.

Son of Captain Nemo's picture

And guess who has easy access if and when the next emergency happens?...

sparksmass's picture

Questiion:  Is it possible for Blockchain Technology to take off, be a huge success, be used in everything, and that be separate from Bitcoin and Ethereum, with those two going into the crapper?

GoyimUprising's picture

Yes. More likely for BTC to fail than ETH. Ethereum has a lot of Enterprise backers.

Golden Phoenix's picture

>Ethereum and tokens are just more derivative banker shit.

Fixed it for ya.

tmosley's picture

Possible? Yes. Likely? No.

If quantum vulnerabilities are exploited and core devs/miners drag their feet addressing the problem, a smaller, better coin could take over.

Son of Captain Nemo's picture

As some of us consider what the opportunity cost of buying "Buttcoin" vs Au and Ag at this moment actually "IS"!

Just imagine if everyone getting into the latest "pet rock" decided to take ALL their money and instead buy $1,300 worth of Au instead of $4,100 of a digital "1" and "0" backed by nothing other than a hash algo????

Wonder what the Federal Reserve, J.P. Morgan Chase and Goldman would be doing if that happened?...

Hmmm.... Let us THINK!!!!

LostandFound's picture

Funny you should say that, even the gold dealers are starting to accept the new pet rock for the old one.

Son of Captain Nemo's picture

Win Win for them!

But to my point. Why buy $4,100.00 of a digital transmission that can be compromised and traced, versus 3 troy ounces that you own and can't be traced once purchased?

Aireannpure's picture

Exactly. Thank you. You left out taxes on the digital transmission.