Share this article
ECB's Mersch Airs Concerns Over Crypto 'Gold Rush'
The ECB executive board member has supported recent criticism of bitcoin by Agustin Carstens, head of the Bank for International Settlements.
Updated Sep 13, 2021, 7:32 a.m. Published Feb 8, 2018, 1:30 p.m.
European Central Bank (ECB) executive board member Yves Mersch is coming out in support of recent comments by Agustin Carstens, general manager of the Bank for International Settlements (BIS), in which he laid into bitcoin as a bubble, a Ponzi scheme and a threat to central banks.
According to an FT report, Mersch is now saying that, while regulators had been taking a wait-and-see approach to cryptocurrencies, "since this hype accelerated at the end of last year it has moved higher up on the agenda."
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
But, he added that, although the ECB shares Carstens' concerns over the issue of crypto assets, he doesn't believe the market is big enough to affect the wider economy.
Instead, the central bank is "more concerned about the social and psychological effect" of the hype in the market.
Mersch said:
"There is so much money flowing in that it's like a gold rush – but there is no gold."
The ECB board member also raised the subject of the illicit use of cryptocurrencies in money laundering and terrorist financing, saying that a solution may be to "force" unregulated exchanges to report transactions – giving the ECB data it needs to "create a better response."
In his Feb. 6 comments, Carstens argued that cryptocurrencies could become "parasites" on the financial system, saying they must be held to the same standards as banking and payment services. He further stated that cryptocurrencies should not be allowed to undermine trust in central banks.
"The tried, trusted and resilient modern way to provide confidence in public money is the independent central bank," Carstens said at the time.
Mersch's comments come a day after the European Union's top securities watchdog – the European Securities and Markets Authority (ESMA) – released a report indicating that cryptocurrencies will be one of its top priorities for 2018.
In its supervisory work agenda for 2018, it revealed that one of its five primary tasks for the year will be monitoring the development of financial innovation, including cryptocurrency and blockchain technology.
Yves Mersch image via CoinDesk archive
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Bulls beware — BofA Fund Manager Survey flashing contrarian sell signal
Bitcoin could see further declines if traditional markets sharply pull back, or just possibly a broad tumble in stocks could set the stage for a bull run in crypto.
What to know:
- Investor cash allocations fell to a record-low 3.3%, according to the Bank of America's latest Fund Manager Survey, while exposure to equities and commodities reached the highest levels since early 2022.
- Optimism about a soft landing and rising profits pushed sentiment to its strongest point since mid-2021.
- A decline in traditional markets might seem to point to further losses in crypto, but it could also be a bullish signal.
Top Stories
