ECB considers Bitcoin a “speculative asset”

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The European Central Bank (ECB) is taking a cautious approach to Bitcoin. ECB CEO Isabelle Schnabel made it clear through the ECB X account that the bank has no intention of buying Bitcoin, considering it a speculative asset that does not meet the characteristics of a currency.

🇪🇺@ISABELL_Schnabel: The European Central Bank is unlikely to buy Bitcoin. #askECB https://t.co/jpwUtuKFBS

— European Central Bank (@ecb) January 10, 2024

The announcement comes as the European Central Bank explores a digital euro, which is envisioned as a fast, simple and secure tool for everyday payments. When asked on the ECB’s X account about the possibility of buying Bitcoin as a reserve asset, she said:

“The European Central Bank is unlikely to buy Bitcoin.”

Schnabel’s comments reflect this approach method The European Central Bank has taken a cautious approach to crypto-assets, highlighting their lack of intrinsic economic value, high volatility and risks associated with their use as speculative instruments. In the view of the European Central Bank, Bitcoin’s market valuation is based entirely on speculation.

“The digital euro is a public currency issued directly by the European Central Bank. Bitcoin is different – it is a speculative asset and does not meet the characteristics of a currency.”

Schnabel and the ECB are focusing on developing a digital euro, scheduled to be launched in 2026 under strict regulatory oversight and control. They intend for this digital currency to coexist with paper money, not replace it. The ECB aims to maintain the euro’s role in an increasingly cashless society and prevent reliance on private choice.

One of the concerns about the Eurozone Central Bank Digital Currency (CBDC) is personal privacy. Schabel disagreed with this suspicion, saying:

“The digital euro will provide everyone in the euro area with an additional payment option, backed by the European Central Bank and usable across the euro area. Just like cash, it will be easy to use and meet the highest security standards.”

The ECB’s rejection of Bitcoin is in line with its strategic vision for a regulated and controlled digital euro, highlighting the importance of central bank-issued digital currencies in the EU’s financial context.