European Central Bank Advisor Discusses Bitcoin (BTC): “It Has Closed All Doors!”

While the US has a positive approach towards Bitcoin and is discussing the issue of a national Bitcoin reserve, the European Union has a more negative stance towards BTC. At this point, an advisor to the European Central Bank (ECB) reiterated the bank’s negative stance towards Bitcoin. Describing Bitcoin as a risky and speculative asset, Jürgen Schaaf rejected the idea of Bitcoin as a strategic reserve asset, citing its volatility, lack of economic necessity, and its vulnerability to manipulation. Schaaf argued that it makes sense to hold reserves of energy resources like oil or gas, but not Bitcoin. He said that “countries have no real economic need for Bitcoin,” adding that Bitcoin has no core economic use and will fuel speculation rather than stabilize economies. Jürgen Schaaf also opposed the idea that the ECB should add BTC to its reserves, stating that multiple digital assets would only increase risk and volatility. “Adding Bitcoin to ECB reserves will not stabilize the currency. Adding multiple cryptocurrencies to reserves will only increase speculation, exacerbate problems, increase volatility and increase exposure to speculative assets that often have no fundamental economic benefit.”
*This is not investment advice.