Andrea Enria is the chair of the European Central Bank’s supervisory board. She spoke to four European Union media outlets on Wednesday in a interview.

Enria stated that the ECB plans to create a digital euro as well as private crypto, but this is not a threat for banks. The supervision of crypto companies could prove more difficult than that of banks, because some services offered by the sector “to a great extent” mimicked the services of banks in decentralized Finance.

Enria stated that “here the difficulties are grave.” “For us, the main issue will be deterritorialization. These entities do not always have a specific headquarters.”

Binance, the world’s biggest crypto exchange that recently reached a landmark settlement of $4.3 billion for serving customers in the United States without the proper approvals, operates without a HQ. The revelations that followed the collapse of multi-billion dollar enterprise FTX in 2022 showed “a great deal of opacity” among crypto firms.

You have a problem of consolidation. Enria stated that in the case of FTX, you have not been able to have a groupwide view of the business or the risks taken by these entities.

BTC Price Index and Live Chart – CoinDesk”>(BTC), or the absence of a clear entity within DeFi projects also makes these elements hard to supervise, he said.

“That’s the biggest challenge we face, more so than the banks.” Enria explained that the issue is to ensure that, once someone conducts banking activity under their supervision and regulation.

As the EU’s parliament examines legislative proposals to create a digital currency, which is widely expected will challenge private cryptography as a payment method, officials face questions about virtual assets.

Read more: Fiery public hearing on digital euro sees experts diverge on key issues

Sheldon Reback is the editor.