Despite the recent approvals of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC), the European Central Bank (ECB) remains steadfast in its anti-crypto stance. In a blog post published on February 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 skepticism towards the notion that the ETF approvals validate the safety of BTC investments and the preceding market rally. In fact, the authors assert that the fair value of Bitcoin is still zero.
Bindseil and Schaaf refer back to a previous blog post they wrote in 2022, in which they argued that Bitcoin has failed to live up to its original promise of becoming a globally decentralized digital currency. They also believe 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.
While acknowledging that the expectation of ETF approvals has driven up the price of Bitcoin, the ECB executives caution that this could be a temporary phenomenon. They emphasize the need for continued vigilance in controlling Bitcoin to protect society from issues such as money laundering, cybercrime, financial losses for less educated individuals, and significant environmental damage.
In another column published on February 19, ECB executives, including board member Piero Cipollone, presented counterarguments to claims that introducing the digital euro could lead to a widespread banking crisis and that banks risk losing deposits as a long-term source of refinancing.