European Central Bank board member Fabio Panetta PHD87 has warned that recent market turbulence in the cryptocurrency sector, including the collapse of TerraUSD and FTX, is unlikely to spell its ultimate demise.
He delivered the assessment in a speech at the London Business School’s AQR Asset Management Institute’s annual Insight Summit held at the School on 7 December 2022.
Dr Panetta said: “People like to gamble. On horse races, football games and many other events. And some investors will continue to gamble by taking speculative positions on crypto-assets.”
“The fundamental flaws of crypto-assets mean that they can quickly collapse when irrational exuberance subsides. We should therefore focus on protecting inexperienced investors and preserving the stability of the financial system,” he said.
“Ensuring that crypto-assets are subject to adequate regulation and taxation is one path to achieving this. Here, we need to move rapidly from debate to decision and then implementation.”
Other speakers at the 2022 summit included:
Dr Nouriel Roubini appeared in conversation with Professor Richard Portes, co-Academic Director of the AQR Asset Management Institute, to discuss ‘Megathreats and the New Abnormal’.
Professor Anna Pavlova, co-Academic Director of the AQR Asset Management Institute, announced LBS PhD candidate Taisiya Sikorskaya as the PhD AQR Fellowship Award winner.
More information on the Insight Summit.