[Fact Check] Cryptos Are Like A ‘Fairy-Tale Story’ and Are ‘Already Collapsing’, Says ECB Policy Maker — How accurate is this article?

CryptoGlobe.com recently highlighted and exaggerated that the crypto bubble is starting to collapse while leaving out some other important details.

The following are details that wasn’t included in the article:

• Hansson had compared the crypto euphoria with a real bubble that may be worse than the Tulip mania of the 17th century. The US-born economist in the same breath had cleared that cryptocurrency bubbles would not pose risks to financial stability.
• “The volumes are too low. If they rise sharply and loans are raised in a big way to massively buy such assets, then it could be a danger. Currently, however, it is a problem for investors and consumers. Some people will probably make a lot of money. But many people will probably lose a lot of money too,” Hansson had said during an interview with eestipank.
• Hansson repeated his concerns over the growing relationship between the regulated financial sector and virtual currencies.
• Hansson didn’t mention Bitcoin while asserting his views about the crypto bubble which was very unlikely of a chief economist.
• Hansson highlighted concerns that cryptocurrencies can be used for illegal activities and financial-stability issues may arise if links between virtual assets and the regulated financial sector are starting to increase, he added.

In conclusion, this article is more of an opinion made by a conservative economist rather than a high ranking official of ECB. Estonia used to be favorable towards blockchain technology however things seemed to have change due to the opposition made by the EU.

J.D.