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

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.


TheReplacement tmosley Wed, 09/27/2017 - 12:54 Permalink

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. 

In reply to by tmosley

Ghost of PartysOver VD Wed, 09/27/2017 - 08:36 Permalink

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.

In reply to by VD

VD FreeShitter Wed, 09/27/2017 - 09:00 Permalink

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.

In reply to by FreeShitter

Deep In Vocal … Wed, 09/27/2017 - 08:26 Permalink

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?   

silverer Wed, 09/27/2017 - 08:32 Permalink

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.

sparksmass Wed, 09/27/2017 - 08:33 Permalink

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?

Son of Captain Nemo Wed, 09/27/2017 - 08:39 Permalink

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!!!!