Head of Portugal Central Bank deems crypto unsustainable, calls for global regulation

Mário Centeno, the Governor of Banco de Portugal, joins a chorus of regulators, claiming that nationalist efforts to oversee crypto wouldn’t enactment correctly without a planetary framework. 

A conception of Mário Centeno's speech. Source: Publicnow.com

In his opening code astatine the 2023 Banco de Portugal Financial Stability Conference connected Oct. 2, Centeno called for planetary practice to acceptable up a “robust framework” and debar the anticipation of “regulatory arbitrage”:

“It would beryllium short-sighted to judge that regulating and supervising these planetary risks and planetary players astatine the nationalist level volition suffice.”

Speaking of crypto assets and decentralized concern (DeFi), Centeno mentioned the “undeniable risk” of their inviability successful the agelong run. The authoritative expressed his disbelief successful the democratizing imaginable of integer assets and adjacent their quality to yet survive: 

“These volatile products experienced an tremendous surge successful popularity during the Covid-19 pandemic, but proved to beryllium unsustainable and, unsurprisingly, culminated successful the illness of respective products.”

Centeno praised the European Union’s archetypal broad crypto framework, Markets successful Crypto Assets (MiCA), but insisted connected further planetary consolidation of regulatory efforts nether the rule of “same risk, aforesaid regulation.” 

Related: Brazil’s crypto surge prompts cardinal slope to tighten regulation

Roughly the aforesaid sentiment was precocious expressed by the enforcement manager of strategy, argumentation and power astatine the German Federal Financial Supervisory Authority (BaFin). In his blog post, Rupert Schaefer acknowledged the evident advancement successful regulating crypto with MiCA adoption successful the EU but prompted astir the inconsistencies existing connected a planetary scale.

In August, Indian Prime Minister Narendra Modi besides called for planetary collaboration connected formulating crypto regulations during the yearly Group of 20 (G20) summit.

Collect this nonfiction arsenic an NFT to sphere this infinitesimal successful past and amusement your enactment for autarkic journalism successful the crypto space.