The European Central Bank (ECB) has restated its opposition to cryptocurrencies despite positive market sentiment. The institution remains unconvinced by the recent approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC).
On February 22, Ulrich Bindseil, the Director General of the ECB’s Market Infrastructure and Payments division, and Jürgen Schaaf, an advisor to the same division, published an article on the ECB’s official blog. The title of the blog post speaks for itself: “ETF approval for Bitcoin – the naked emperor’s new clothes.”
The authors reject the notion that the approval of spot Bitcoin ETFs in the US confirms the safety of BTC investments and validates the preceding rally as an “unstoppable triumph.” According to the bankers, the fair value of Bitcoin is still zero.
Bindseil and Schaaf refer to their previous blog post from 2022, arguing that Bitcoin has failed to live up to its initial promise of being a global decentralized digital currency. They also believe that Bitcoin is not a suitable investment, as it does not generate cash flow or dividends, cannot be used productively, and offers no social benefit or subjective appreciation based on exceptional capabilities.
The ECB executives acknowledge that the expectation of ETF approvals contributed to the rise in Bitcoin’s price, but they caution that it could be short-lived. They conclude that the ECB’s responsibility to regulate Bitcoin has not yet been fulfilled. Authorities must remain vigilant and protect society from money laundering, cybercrime, financial losses for less educated individuals, and significant environmental damage.
In another column on February 19, ECB executives, including board member Piero Cipollone, countered claims that the introduction of the digital euro could lead to a widespread banking crisis and that banks risk losing deposits as a long-term source of refinancing.