“They are devoid of intrinsic value and do not generate income streams. They are created through computer procedures and there is no real or financial entity or activity that ensures their value. They are sometimes exchanged on informal circuits and opaque or on platforms not subject to adequate controls”: the Governor of the Bank of Italy, Fabio Panetta in his speech at the annual meeting of the ABI, yesterday in Rome he returned to express an evaluation – decidedly negative – on the cryptoassets not guaranteed, as Bitcoin and Ethereum. And it is not the first time.
Cryptocurrencies, Panetta’s (yet another) push
“Those who hold them have the main objective of reselling them at higher prices and in some cases to evade tax regulations, the fight against money laundering and the fight against the financing of terrorism. Typically, these crypto-activity they actually represent a gamble – Panetta added – a high-risk speculative contract, whose value is not tied to fundamentals. For these reasons their value registers very strong oscillations”. “As is evident, they do not have the characteristics to perform the three functions of money – he concluded -: means of payment, store of value and unit of account”.
Rates, gradual cuts ahead if given as expected
Bread he also talked about the rate cut. The reduction in the official rates” of the ECB “could continue gradually, accompanying the return of inflation to the objective, if macroeconomic trends remain in line with the expectations of the Governing Council”. If unexpected events instead risk moving us away from the expected path, in one direction or another – he added – we will have to be ready to adapt promptly make our decisions.”
Focus on Italy
In the wake of the monetary tightening carried out by the ECB, “the credit dynamics have weakened significantly”, to values similar to those of the crisis 15 years ago and “the continuation of theto credit weakness would affect a context which, like in other countries, is exposed to vulnerabilities, in which it would be difficult to imagine public interventions such as the exceptionally generous ones launched after the pandemic”.
“The amount of loans to businesses has seen a sharp contraction, which is only now easing. Lending to families has also slowed down sharply,” he noted, “to the point of stagnating in the last year.” In the meantime “interest rates on new loans have increased considerably. The credit slowdown is comparable in size to that which characterized the crisis episodes of the last fifteen years. The effects on the real economy – Panetta noted – have been much less serious”.
Banks’ solidity “element of strength”
In our country “lthe solidity of the banks represents today a strong point of our production system. They now have the task of accompanying the recovery of demand, supporting families and businesses and preventing credit from acting as a brake on consumption and investments. In this way, they will be able to contribute to the recovery of the Italian economy“, concluded Panetta.
