Ethereum
ECB President Panetta criticizes Bitcoin and Ethereum
Alex Dovbnia
Famous Italian central banker claims Bitcoin and Ethereum have no intrinsic value
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Fabio Panetta, member of the Governing Council of the European Central Bank, recently aimed on Bitcoin and Ethereum, the two largest cryptocurrencies, at a conference in Rome on Tuesday.
According to Panetta, these two main cryptocurrencies have no intrinsic value and cannot perform monetary functions.
This is not the first time Panetta has criticized the nascent cryptocurrency industry. reported by U.TodayHe lambasted the negative environmental impact of Bitcoin mining in 2021, saying it could undermine global sustainability efforts. interview In an interview with the Financial Times, he called Bitcoin a “very dangerous animal.”
Panetta even went so far as to claim that cryptocurrencies have no reason to exist in the financial landscape. Besides the mining industry, the prominent Italian central banker also criticized the lack of investor protection as well as rampant crypto crime.
It is worth noting that ECB President Christine Lagarde is on the same page as Panetta when it comes to anti-crypto views. reported by U.TodayShe estimated that digital assets had no value in 2022.
Minimizing inflation fears
At the latest conference, Panetta also dismissed some concerns about higher-than-expected services inflation.
The central banker favours lowering interest rates in the near future “at a gradual pace” after the ECB implemented a rate cut in June.
The rate cut comes after seven consecutive months of falling inflation in the eurozone.
Bitcoin is expected to benefit from the ECB’s looser monetary policy. That being said, the US Federal Reserve has not yet started cutting rates.
About the Author
Alex Dovbnia
Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader, and journalist with extensive experience covering everything related to this booming industry, from price analysis to blockchain disruption. Alex has authored over 1,000 articles for U.Today, CryptoComes, and other fintech outlets. He is particularly interested in regulatory trends around the world that are shaping the future of digital assets. You can contact him at alex.dovbnya@u.today.