ECB Says ETF Approval Does Not Change Bitcoin’s Unsuitability as Payment or Investment
The European Central Bank (ECB) has reiterated its position on Bitcoin (BTC) , stating that the approval of spot ETFs for the cryptocurrency does not change its unsuitability as a means of payment or investment.
In a Thursday blog post , the central bank’s Ulrich Bindseil and Jürgen Schaaf wrote that BTC has failed to live up to its promise of being a global decentralized digital currency and continues to be rarely used for legitimate transactions.
The approval of Bitcoin ETFs by the US Securities and Exchange Commission (SEC) in January was seen by some as a validation of the cryptocurrency and a sign of its unstoppable success.
“We disagree with both claims and reiterate that the fair value of Bitcoin is still zero,” the duo wrote.
They warned about the potential risks associated with a renewed boom-bust cycle of Bitcoin, including environmental damage and the redistribution of wealth at the expense of less sophisticated investors.
The ECB’s skepticism towards Bitcoin is not new.
In a blog post published in November 2022, the ECB argued that Bitcoin has failed to become a global decentralized digital currency and has also fallen short as a financial asset with inherent value.
The central bank also claimed that BTC continues to face significant challenges as a means of payment.
“Today, Bitcoin transactions are still inconvenient, slow, and costly. Outside the darknet, the hidden part of the internet used for criminal activities, it is hardly used for payments at all.”
Bitcoin has failed to become a global decentralised digital currency, instead falling victim to fraud and manipulation.
The recent approval of an ETF doesn’t change the fact that Bitcoin is costly, slow and inconvenient, argues
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