Saturday, May 31, 2025

Latest

ECB Frowns On Bitcoin, Says It’s Headed For “Irrelevance”

The European Central Bank (ECB) stated on Wednesday that bitcoin is being artificially pushed up and should not be legitimized by authorities or financial firms as it approaches “irrelevance.”

The ECB said in a blog post that bitcoin’s recent stabilization was “an artificially induced last gasp before the road to irrelevance.”

“Big bitcoin investors have the strongest incentives to keep the euphoria going,” authors Ulrich Bindseil and Juergen Schaff wrote. “At the end of 2020, isolated companies began to promote bitcoin at corporate expense. Some venture capital firms are also still investing heavily.”

The bank also said in its blog that regulation could be “misunderstood for approval.”

“Since Bitcoin appears to be neither suitable as a payment system nor as a form of investment, it should be treated as neither in regulatory terms and thus should not be legitimized,” the authors said.

Bitcoin and other cryptocurrencies have been promoted in various ways as an alternative form of money and a hedge against the recent inflationary policies followed by major central banks such as the ECB. However, a 75% drop in the last year, just as inflation began to rise, and a series of scandals, including the collapse of the FTX exchange last month, have given opponents among central bankers and regulators ammo to fight back.

Year-to-date, the digital asset fell more than 60% in what critics are calling the crypto winter.

“The financial industry should be wary of the long-term damage of promoting bitcoin investments – despite short-term profits they could make,” the authors added.

ECB President Christine Lagarde stated on Monday that the EU’s Market in Crypto-assets Regulation (MiCA), which is now being authorized, will most likely need to be expanded in a future iteration dubbed “MiCA 2.”


Information for this briefing was found via Financial Post and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

How To Profit From $3300 Gold? An Inside Look At A Massive 300,000 Oz Project | Martino De Ciccio

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

Recommended

ESGold Begins Concentration Tests Ahead Of First Production

Sterling Metals Hits 0.21% Copper Over 482.8 Metres In First Drilling At Soo Copper project

Related News

Hive Blockchain Pushes Computing Power To 1,229 PH/s With Purchase Of 6,400 Additional Miners

Hive Blockchain (TSXV: HIVE) is looking to once again upgrade its computing power for the...

Tuesday, January 19, 2021, 07:14:22 AM

Tesla And Its US$500-Million Bitcoin Problem

Among the current issues hurling Tesla (Nasdaq: TSLA), it seems like problems are something of...

Tuesday, June 14, 2022, 12:17:00 PM

Bitcoin Miners Bracing for Multibillion-Dollar Revenue Hit as Reward Halving Looms

The Bitcoin network is set to undergo its highly anticipated “halving” event around April 20th,...

Monday, April 15, 2024, 03:10:00 PM

El Salvador Shelves Bitcoin Bond Debut Amid Unfavourable Market Conditions

El Salvador decided to postpone the offering of its $1 billion bond last week, citing...

Wednesday, March 23, 2022, 04:16:00 PM

Sam Bankman-Fried Admits FTX Issued Fake Bitcoin

The failed FTX founder Sam Bankman-Fried’s apology roadshow continues and like how a fish gets...

Friday, December 2, 2022, 03:49:25 AM