Despite recent ETF approvals in the US, the European Central Bank (ECB) maintains its cautious stance on cryptocurrencies, particularly Bitcoin.
ECB's Anti-Crypto Position
The ECB executives, including Ulrich Bindseil and Jurgen Schaaf, expressed skepticism regarding the recent spot Bitcoin ETF approvals by the US SEC. In a blog post titled "ETF approval for Bitcoin – the naked emperor’s new clothes," they challenged the notion that BTC investments are secure and criticized the perceived triumph of the cryptocurrency.
Bitcoin's Value Assessment
According to the ECB executives, the fair value of Bitcoin remains zero. They argue that Bitcoin has failed to deliver on its promise of becoming a global decentralized digital currency and lacks the fundamental attributes of a viable investment. The absence of cash flow, dividends, productive use, and social benefit renders Bitcoin unsuitable for investment, they assert.
Concerns Over Speculative Nature
While acknowledging the role of ETF approvals in driving Bitcoin's price, the ECB executives caution against viewing it as a validation of the cryptocurrency's value. They warn against the risks associated with speculative bubbles, emphasizing the potential for environmental damage and wealth redistribution at the expense of less sophisticated investors.
Continued Vigilance Needed
The ECB reaffirms its commitment to monitoring Bitcoin and protecting society from associated risks, including money laundering, cybercrime, financial losses, and environmental impact. Despite the recent ETF approvals, the ECB believes that Bitcoin's speculative nature remains a cause for concern.
Counterarguments on Digital Euro
In a separate column, ECB executives addressed concerns about the introduction of the digital euro, refuting claims of a potential banking crisis and deposit loss risks for banks in the long term.
