- The European Central Bank is tasked with controlling monetary policy for euro countries and is unlikely to ever buy bitcoin according to ECB board member Isabel Schnabel.
- The ECB controls policy for euro countries, similar to how the Federal Reserve does for the US. Schnabel was nominated by Germany to the ECB’s executive board in 2019.
- Schnabel said the ECB is very unlikely to ever buy bitcoin, even as some call it “digital gold.” The ECB is more interested in a central bank digital currency instead of crypto.
The European Central Bank is tasked with controlling monetary policy for countries using the euro. ECB board member Isabel Schnabel said the bank is very unlikely to ever purchase bitcoin. This comes even as a spot bitcoin ETF nears approval in the US, which would expose more traditional investors to the cryptocurrency.
Background on the European Central Bank
The ECB controls monetary policy for the bloc of European Union countries that use the euro currency. It is the European equivalent of the US Federal Reserve, led by Jerome Powell.
The ECB has a six-person executive board responsible for implementing policy. Isabel Schnabel was nominated by Germany in 2019 to serve on the board.
Schnabel is known for hawkish views on interest rates, though she recently reversed course. She joins other ECB leaders in calling for tighter crypto regulation.
Central Bank Views on Bitcoin
In a Wednesday Q&A, Schnabel said the ECB is very unlikely to ever buy bitcoin. This despite central banks like the ECB holding gold reserves.
Bitcoin fans often call the cryptocurrency “digital gold.” But so far central banks have been slow to warm to bitcoin and crypto as reserve assets.
The ECB is exploring a central bank digital currency (CBDC) instead. But crypto advocates tend to dislike CBDCs, which are regulated by central banks.
Schnabel’s comments got backlash from Bitcoin supporters online. But the ECB appears firmly opposed to crypto holdings for now.
