ECB’s Isabel Schnabel Criticizes Bitcoin, Promotes CBDCs
In a recent Q&A session, Isabel Schnabel, a member of the ECB executive board, expressed her skepticism towards bitcoin, highlighting that it lacks the essential functions of money. She presented central bank digital currencies (CBDCs) as a more reliable alternative to digital private money, emphasizing that the digital euro is public money issued directly by the European Central Bank. Schnabel emphasized the advantages that a digital euro could bring, particularly the ability to convert private money to public money. She also mentioned that a digital euro would strengthen trust in the European currency.
Addressing the possibility of the ECB buying bitcoin for its balance sheet, Schnabel stated that it was highly unlikely but did not completely rule it out.
The ECB is currently in the preparation phase of the digital euro project, with a focus on resolving offline payment issues. However, a final decision has not been made regarding its issuance.
Hot Take: ECB Executive Blasts Bitcoin as Speculative Asset
Isabel Schnabel, a member of the ECB executive board, has voiced her concerns about bitcoin, arguing that it lacks the essential characteristics of money. She presented central bank digital currencies (CBDCs) as a reliable alternative and highlighted the benefits of a digital euro, particularly the ability to convert private money to public money. Schnabel also downplayed the possibility of the ECB ever buying bitcoin. While the ECB is actively exploring the digital euro project, its issuance is still pending a final decision. This criticism from a top ECB official further highlights the divergence between CBDCs and bitcoin as they compete for wider adoption and acceptance.
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