Portugal Central Bank Chief Advocates Global Regulation, Deeming Crypto Unsustainable

Mário Centeno, the governor of Portugal Central Bank (Banco de Portugal), emphasized the need for a global regulatory framework for cryptocurrencies during the 2023 Banco de Portugal Financial Stability Conference. He echoed the sentiment of many regulators, asserting that national-level oversight is insufficient in the face of the global nature of cryptocurrencies and decentralized finance (DeFi).

Centeno highlighted the potential risks associated with crypto assets and DeFi, expressing doubts about their long-term viability. He mentioned that these assets gained popularity during the pandemic but proved unsustainable, leading to the collapse of various projects.

Opening Remarks by Governor of .@bancodeportugal Mário Centeno at the Conference on Financial Stability
🔗👉 https://t.co/BCXwqYWE3j pic.twitter.com/f5NgGpAOtv

— Banco de Portugal (@bancodeportugal) October 2, 2023

The governor of Portugal Central Bank commended the European Union’s Markets in Crypto-Assets (MiCA) regulations, marking the EU’s first comprehensive crypto framework. However, he stressed the importance of further international collaboration, emphasizing “same risk, same regulation.”

Centeno’s call for global coordination aligns with similar sentiments regulators express worldwide.

Rupert Schaefer, from the German Federal Financial Supervisory Authority, highlighted global crypto regulation disparities despite the EU’s MiCA adoption.

Indian Prime Minister Narendra Modi urged global collaboration in crafting crypto regulations at the August G20 summit.