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ECB's Panetta Slams Bitcoin and Ethereum

source-logo  u.today 09 July 2024 21:09, UTC

Fabio Panetta, a member of the European Central Bank's Governing Council, recently took aim at Bitcoin and Ethereum, the two largest cryptocurrencies, during a Tuesday conference that took place in Rome.

According to Panetta, these two leading cryptocurrencies have no intrinsic value and cannot perform monetary functions.

This is not the first time that Panetta has criticized the fledgling cryptocurrency industry. As reported by U.Today, he lambasted the adverse environmental impact of Bitcoin mining back in 2021, claiming that it could undermine global sustainability efforts. In an interview with the Financial Times, he called Bitcoin "a very dangerous animal."

Panetta went even as far as claiming that cryptocurrencies have no reason to exist in the financial landscape. Apart from 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 the anti-crypto views. As reported by U.Today, she opined that digital assets were worthless back in 2022.

Downplaying inflation concerns

During the most recent conference, Panetta also dismissed some concerns about stickier-than-expected services inflation.

The central banker supports lowering interest rates in the near future "at a gradual pace" after the ECB implemented a rate cut in June.

The rate cut came seven months in a row of lower inflation figures within the eurozone.

Bitcoin will likely benefit from the ECB's looser monetary policy. With that being said, the U.S. Federal Reserve is yet to start cutting rates.