As a researcher with a background in economics and experience following the European Central Bank (ECB) closely, I cannot help but share my perspective on Fabio Panetta’s recent criticisms of Bitcoin and Ethereum. While I respect his expertise and position as a member of the ECB’s Governing Council, I strongly disagree with his assessment of cryptocurrencies having no intrinsic value or being unable to perform monetary functions.
At a recent conference in Rome on Tuesday, Fabio Panetta, who is part of the European Central Bank’s ruling body, criticized Bitcoin and Ethereum, the leading cryptocurrencies.
In the words of Panetta, these top cryptocurrencies do not possess any inherent worth and are unable to carry out monetary duties.
Previously, Panetta has voiced concerns over the negative environmental consequences of Bitcoin mining. According to U.Today, in 2021 he went so far as to label Bitcoin as “a very dangerous animal,” potentially hindering global efforts towards sustainability.
As a researcher examining the role of cryptocurrencies in finance, I’ve come across Panetta’s stance that these digital currencies hold no necessity in our financial system. He specifically points to the mining industry, but expresses concerns over the absence of investor protection and the pervasive issue of crypto-related criminal activities.
Noteworthy is that European Central Bank (ECB) President Christine Lagarde shares similar perspectives as Panetta regarding cryptocurrencies. According to U.Today, she stated back in 2022 that digital assets hold no value.
Downplaying inflation concerns
At the latest conference, Panetta downplayed certain worries regarding persistent inflation in service costs.
The central banker advocates for a modest reduction in interest rates in the coming weeks, following the European Central Bank’s decision to lower rates in June.
The rate cut came seven months in a row of lower inflation figures within the eurozone.
As a crypto investor, I believe that the relaxation of monetary policy by the European Central Bank (ECB) could potentially be beneficial for Bitcoin. However, it’s important to note that the U.S. Federal Reserve has not initiated any rate cuts as of now.
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2024-07-09 22:08