The central bank of the European Union countries, European Central Bank (ECB) officials Ulrich Bindseil and Jürgen Schaaf criticized the bitcoin rally fueled by the U.S. approval of spot exchange-traded funds.
In a blog post, they reiterated the ECB’s belief that Bitcoin is a “lousy investment” and a poor means of payment, maintaining their stance that its fair value is zero.
The officials outlined factors behind the rally, citing manipulation in an unregulated market, demand for the “currency of crime,” and shortcomings in authorities’ judgments. They emphasized the absence of fair value for bitcoin, making serious forecasts challenging.
Bindseil and Schaaf stated, “The ongoing manipulation of the ‘price’ in an unregulated market without oversight and without fair value, the growing demand for the ‘currency of crime,’ and shortcomings in the authorities’ judgments and measures.”
Last year, the European Union established a regulatory framework for crypto assets, with the ECB focused on developing a digital euro as a secure alternative. The officials warned of potential consequences when the market eventually collapses, urging authorities to remain vigilant to protect society.
While bitcoin ETFs have been approved in the US, the ECB still stands firm in its negative attitude towards crypto.
Also Read: Gensler Says SEC’s January Bitcoin ETF Approval ‘Cabined’
