The European Central Bank (ECB) remains steadfast in its opposition to cryptocurrencies, despite the recent approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC), which has generated optimism in the market.
In a blog post published on Feb. 22, Ulrich Bindseil, the Director General of the ECB’s Market Infrastructure and Payments division, and Jürgen Schaaf, an adviser to the same division, expressed their disagreement with the notion that the approval of BTC ETFs in the U.S. signifies the safety of BTC investments and the previous rally serves as “proof of an unstoppable triumph.” According to the bankers, the fair value of Bitcoin is still zero.
Bindseil and Schaaf referred to their previous blog post from 2022, where they argued that Bitcoin has not lived up to its initial promise of becoming a globally decentralized digital currency. They also stated that Bitcoin is not a suitable investment, as it does not generate any cash flow or dividends, cannot be used productively, and lacks any social benefit or subjective appreciation based on exceptional qualities.
The ECB executives acknowledged that the anticipation of ETF approvals contributed to the increase in Bitcoin’s price, but they believe this could be a temporary phenomenon. They emphasized the ECB’s ongoing responsibility to regulate Bitcoin and stressed the need for vigilance in protecting society from money laundering, cybercrime, financial losses for those with limited knowledge, and significant environmental damage.
In another column on Feb. 19, ECB executives, including board member Piero Cipollone, presented counterarguments to claims that the introduction of the digital euro could lead to a widespread banking crisis and that banks may lose deposits as a source of refinancing in the long run.