EU Parliament Report Shows Support for Cryptocurrencies, Says Critics Are 'Mistaken'

A report by the EU Parliament published on June 26 says that cryptocurrency detractors are mistaken for proclaiming the death of this alternative money. Titled “Virtual currencies and central banks monetary policy: challenges ahead,” the report supports the new innovation on multiple fronts.

The study was conducted by the Warsaw, Poland-based Center for Social and Economic Research. The non-profit institute recognizes the positive impact that cryptocurrencies brought to finance, noting that they are now widely used across the globe, CryptoIsComing reported.

The report claims that cryptocurrencies are reacting to a “real market demand,” acknowledging its potential to be a “full-fledged private money” in the future. It adds that it can even go so far as to become a perpetual component of the global economy.

“Thanks to their technological properties, their global transaction networks are relatively safe, transparent, and fast. This gives them good prospects for further development,” the reports states.

However, the researchers posit that effective as cryptocurrencies are in particular areas, they will find themselves wanting if they challenge the entrenched foundations of fiat currencies and central banks. This conclusion is similar to what the German government found. It said that the current transactions facilitated by the crypto market pale in comparison to the dealings of the global financial economy, and that the two are simply operating at different levels.

But there are exceptions, the EU report states, citing the inflation issues currently plaguing Venezuela. The researchers note that on smaller monetary jurisdictions, cryptocurrencies “may” provide a substitute for an unstable currency.

The authors also directly go after cryptocurrency critics in the report. “The economists who attempt to dismiss the justifications for and importance of VCs, considering them as the inventions of ‘quacks and cranks’ (Skidelsky, 2018), a new incarnation of monetary utopia or mania, fraud, or simply as a convenient instrument for money laundering, are mistaken,” the authors say.