Central banks therefore have an important role to play in the regulation of central clearing – a notion which is largely recognised but often misunderstood.In this context, let me say a few words about recent developments in the area of CCP regulation, and in particular the outcome of the legislative process regarding the revision of the supervisory framework for CCPs, the European Market Infrastructure Regulation (EMIR II), and the recommendation to amend Article 22 of the Statute of the ESCB and the ECB. They reject the paradigm of state-supported currencies governed by central banks, along with the role of financial institutions as trusted intermediaries. That said, our role is not to drive technological adoption by the industry and the general public, but to ensure that changing preferences can be satisfied in a secure way.
Discover more about working at the ECB and apply for vacancies.We are always working to improve this website for our users. In such dynamic markets, in which economies of scale play a pivotal role, we should not get lost in national details but should self-confidently enhance the conditions of the European single market and the competitiveness of its participants, without, however, putting up protectionist barriers. Fulfilling this objective is conditional on the independence of the central bank, as ensured by a narrow but clearly defined mandate. By. On 19 March 2008, Mersch admonished banks for inappropriate In late June, 2011, speaking while at the annual general meeting of the Mersch is married to Malaysian economist Tengku Khatijah Ahmad and has two children. These self-proclaimed currencies, more accurately described as crypto-assets, have proved to be unfit for purpose, demonstrating that well-executed central bank policies are still the only sound basis for stability.The original bitcoin vision replaces trust in a dedicated intermediary with cryptographic proof. Indeed, some of the technology is worth exploring and could also be of interest to central banks.
We could not accept a situation in which, for anti-European or populist motives, certain euro denominations were not allowed to be used in some parts of the EU. While DLT is a necessary element of crypto-assets, it is not in itself their defining feature.Some crypto-assets have recently emerged that strive to minimise fluctuations in value against a currency of reference, but even they are no alternative to the euro. In other words, any two parties can transact directly with each other as peers without requiring a trusted third party. The case asks the court to define the term ‘legal tender’. This is also the best contribution we can make to achieving sustainable growth. Browse the ECB’s reports, publications and research papers and filter them by date or activity. As central banks, we must remain true to our core mandate. Dig deeper into the ECB’s activities and discover key topics in simple words and through multimedia. We are seeing ever more solutions in search of a problem.Bitcoin and other crypto-assets claim to need neither trust nor the backing of a sovereign.
This established consensus is being challenged by private initiatives triggered by technical innovation. Mersch served as assistant to the IMF’s Belgian executive director between 1976 and 1978 and later held a short-term position as financial counsellor at the Permanent Representation of Luxembourg in New York. Independence is granted to central banks to prevent politicians from seeking electoral gain through measures which boost economic activity in the short term but damage the long-term health of the economy and the country. In the case of the EU, it falls to the ECB to issue the euro and decide on the denomination of banknotes. Blog post by Yves Mersch, Member of the Executive Board of the ECB and Vice-Chair of the Supervisory Board of the ECB. To do this, we use the anonymous data provided by cookies.We are always working to improve this website for our users. Both mega-mergers had a market value of $55 billion and more could follow. Frankfurt am Main, 9 July 2020. By leveraging cryptography and mechanisms to reach consensus among peers in a distributed system, DLT ensures the integrity and security of records which, in a centralised system, would be entrusted to a responsible third party.