Despite market optimism, the European Central Bank (ECB) has reiterated its anti-crypto stance. The institution is not convinced by the latest approvals of Bitcoin ETFs by the US Securities and Exchange Commission (SEC). On February 22, Ulrich Bindseil, Director General of the ECB's Market Infrastructure and Payments Division, and Jürgen Schaaf, advisor to the same division, published an article on the ECB's official blog. The title of the article speaks for itself: "ETF approval for Bitcoin – the naked emperor's new clothes".
The authors disagree with the assertion that the approval of Bitcoin ETFs in the US confirms that BTC investments are safe and that the previous rise was "proof of an unstoppable triumph". Bitcoin's fair value is still zero, say the bankers: "For society, a new Bitcoin boom-bust cycle is a disastrous prospect. And the collateral damage will be massive, including environmental damage and the ultimate end of trust in digital currencies."
The implications of the ECB's position
The ECB's position on the approval of Bitcoin ETFs in the US raises important questions about the future of crypto-currency in Europe. If the ECB does not change its position, it could have implications for investors and companies looking to invest in crypto-currency. It could also have implications for US-European relations, as it could prompt European companies to seek alternatives to the US for their crypto-currency investments.
Ultimately, the ECB's position underscores the importance of transparency and compliance in the crypto-currency industry. Companies must be able to trust regulators to comply with applicable laws and regulations, and regulators must be able to trust companies to comply with settlement agreements. If these relationships of trust are broken, it could have negative consequences for the crypto-currency industry as a whole.
