The European Central Bank called “the approval of the Bitcoin ETF the new outfit of the naked king” and criticized this investment tool. The head of the market infrastructure and payments division of the ECB, Ulrich Bindseil, and the advisor to the same division, Jürgen Schaaf, write about this in a blog on the ECB page.
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Representatives of the regulator confirmed their position on the fight against cryptocurrencies, despite the approval of such instruments by foreign regulators.
The authors disagree with the statement that the approval of a Bitcoin ETF in the US indicates the safety of investing in Bitcoin and that its rally is “proof of an unstoppable triumph.” ECB officials acknowledge that the wait for spot ETF approval has led to a rise in the price of Bitcoin, but they believe that this may be a short-lived surge of emotions.
The ECB cites a 2022 post that claims that Bitcoin failed to deliver on its original promise of becoming a global, decentralized digital currency. In their opinion, Bitcoin is also unsuitable as an investment because it does not generate any cash flow or dividends, cannot be used productively, does not bring social benefits and does not have subjective advantages based on its outstanding capabilities.
“ From a public interest perspective, restoring Bitcoin's boom-bust cycle is a dire prospect. The collateral damage will be enormous, including harm to the environment and the eventual redistribution of wealth at the expense of insufficiently experienced people,” the bankers write.
Recall that in January, the SEC, after 10 years of delays, allowed a spot Bitcoin ETF, after which the price the first cryptocurrency began to grow.
