European regulators have reiterated their opposition to Bitcoin despite its recent resurgence in the market. In a blog post published on February 22nd, the European Central Bank (ECB) expressed its antipathy towards Bitcoin, citing specific challenges facing the digital asset.
Although the ECB acknowledged that the recent approval of the spot Bitcoin ETF by the US SEC has spurred many to believe that Bitcoin investments and short-term price rallies signal a bullish trend, the agency also stated that the “value of Bitcoin is still zero.”
European legislators have been wary of the risks associated with using Bitcoin for some time and established MiCA legislation to regulate the entire digital asset market by 2023.
The ECB’s post underscores its skepticism about Bitcoin’s viability as a global investment avenue and currency. The bank noted Bitcoin’s inability to achieve decentralization and the high preference for fraudsters to use the asset for illicit acts and cyber theft.
Furthermore, the ECB highlighted that Bitcoin is plagued by high transaction costs, slow speeds, and limited utility for legitimate transactions.
The ECB’s post comes barely a month after the US SEC finally approved launching spot Bitcoin ETFs after numerous denials of applications from finance powerhouses such as as BlackRock and Grayscale.
Many crypto enthusiasts believe the SEC’s spot ETF approval is a watershed moment for the entire crypto ecosystem, but the ECB obviously thinks otherwise. The keenly anticipated approval into motion a market rally that many now refer to as an unofficial end to the biting crypto winter.
The ECB referenced its November 2022 blog post, where it purportedly debunked the fake promises of Bitcoin and warned citizens of the social dangers of the coin if not properly addressed.
Bitcoin has slowed down on its February bullish momentum, failing to beat the $53,000 resistance level. The coin is currently trading at $51,593, a 1.09% growth from Bitcoin’s 24-hour trading price according to CoinMarketCap data.
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