ECB Director General Ulrich Bindseil and advisor Jürgen Schaaf are definitely against bitcoin, but their reasons don’t make a lot of sense.
ECB Officials’ Statement on Bitcoin’s Failed Promise and ETFs
“Bitcoin has failed on the promise to be a global decentralised digital currency and is still hardly used for legitimate transfers. The latest approval of an ETF doesn’t change the fact that Bitcoin is not suitable as means of payment or as an investment,” two ECB officials wrote in a blog post.
Bitcoin ETF Approval Comparable to ‘Naked Emperor’s New Clothes,’ ECB Officials Say
The U.S. SEC’s approval of multiple spot ETFs and the billions of dollars that have poured in since doesn’t make Bitcoin a good investment or a better means of payment, the central bankers said in a blog post.
Bitcoin is up 170% since the ECB called its 'last gasp' at $16.4K
Bitcoin does the complete opposite of what the EU’s central bank warned about in late 2022.
Crypto Firms That Act Like Banks Should Be Regulated Like Them, ECB Official Says
But supervision of bank-like crypto firms could be a pain for regulators, said Andrea Enria, chair of the supervisory board at the European Central Bank.
Fiery Public Hearing on Digital Euro Sees Experts Diverge on Key Issues
Expert witnesses answered lawmaker questions on holding limits, impact on banking systems and privacy for an EU central bank digital currency.
Digital Euro Can End Bank Crises, Is Better Than Deposits, Ex-Bank of Spain Chief Says
A central bank digital currency (CBDC) could also be used to deregulate banking activities and help the banking sector grow, Miguel Fernández Ordóñez said during a European Parliament hearing on a digital euro.
Bitcoin critic, ECB chief Lagarde says her son ‘ignored’ her, lost money on crypto: Report
European Central Bank chief Christine Lagarde reportedly said her son ignored warnings against crypto investments and lost “about 60%” of his money.
Digital Euro Isn’t Pressing, but Work Should Continue: Spanish Central Bank Governor
Europe’s “highly efficient” payment systems leave space to address social and financial concerns of a central bank digital currency, Pablo Hernández de Cos said.
BIS general manager urges central banks to “lead innovation” for CBDCs
Agustín Carstens called CBDCs the “central element” of central bank leadership in innovation.
Project mBridge reveals details of its workings ahead of MVP, commercial debut
Project mBridge has put together a slick publication with lots of new information to let the world know what the hottest project in CBDC is.
Project mBridge reveals details of its workings ahead of MVP, commercial debut
Project mBridge has put together a slick publication with lots of new information to let the world know what the hottest project in CBDC is.
Digital Euro Project Moves to ‘Preparation’ Phase
The move is not a decision to issue a central bank digital currency, the European Central Bank said Wednesday.
Future of DAOs limited by lack of regulatory framework: ECB Occasional Paper
Uncertain regulatory conditions continue to have a negative impact on the sustainable growth of the DAO ecosystem, revealed a new European Central Bank occasional paper.
Italy’s Cipollone Defends Digital Euro as He Seeks ECB Role
Remarks at a parliamentary hearing suggest no digital currency swerve when Fabio Panetta steps down in November
Digital Euro at Least 2 Years Away, ECB’s Lagarde Says
The central banker said she wanted to address “conspiracy theories” about government snooping
Digital euro can ward off a host of private payment service ills: ECB official
Private payment services can gain a monopoly over services with no benefit to other market players or economic stability, ECB board member Fabio Panetta said.
Spanish central bank official talks about private payment services in era of digital euro
Banco de España Deputy Gov. Margarita Delgado voiced concern about financial stability issues but painted a rosy picture for nonbank financial service providers.
European Central Bank Follows US Fed’s Footsteps With 25 BPS Hike
On Thursday, the Governing Council of the European Central Bank (ECB) announced that it was raising “three key ECB interest rates” by 25 basis points (BPS) in a move similar to the one taken by the United States Federal Reserve.
The US Federal Reserve, on Wednesday, increased its fund rates by an additional 25 BPS, its highest interest rate in 22 years.
European Central Bank In The Fight Against Inflation
The European Central Bank, in its statement, admitted that although inflation continues to decline, it is “still expected to remain too high for too long.” In a bid to fight inflation and return it to its 2% medium-term target in a timely manner, the governing council has continued to hike the interest rates for some time now, and this has further raised concerns for investors in the financial market as to whether or not there will be hikes before year ends.
For context, the ECB has raised rates by 4.00% since last year July, accounting for the fastest-tightening cycle in its history. It is projected that this rapid increase in rates could negatively affect the expansion of loans in the European region and economic activity also.
A quarterly poll released by the ECB on July 25 revealed that the companies’ demand for loans plunged to its lowest in the second quarter of this year. The eurozone has less developed and liquid capital markets than the United States, so there is an overreliance on banks in financing the economy.
And now, according to ECB Chief Economist Philip Lane, the tighter monetary policy is massively impacting bank loans. So such policies will undoubtedly cause a liquidity squeeze.
Bitcoin’s Role
Although inflation continues to decline, it is evident that the ECB and US Federal Reserve aren’t getting the desired results as to the target to which they want to bring inflation down to. As such, these financial bodies may continue increasing the rates to as high as possible despite the dramatic economic slowdown.
Investors are aware of this position and are looking toward Bitcoin and other cryptocurrencies for succor. For a long time now, Bitcoin has been tagged as a ‘hedge against inflation,’ and it seems that many are realizing that this is more than a tag as Bitcoin has remained stable despite the growing rates, which many would have expected would send Bitcoin and the crypto market spiraling down.
Unlike the United States, European investors are lucky to have more regulatory certainty in the region. The Markets in Crypto Assets (MiCA) regulation offers a sense of direction to stakeholders in the European crypto industry. This will help businesses and investors navigate their way when operating and dealing with crypto assets.
ECB to Start Wholesale CBDC Settlement Trials in 2024
The central bank wants to see innovative interventions in financial markets – but under existing rules.