Fabio Panetta on Cryptocurrencies and Their Unsuitability for Key Monetary Functions
Fabio Panetta, a member of the Executive Board of the European Central Bank (ECB), has once again voiced his concerns about cryptocurrencies. He emphasized that bitcoin (BTC) and ether (ETH) are not suitable for conducting payments and settlements, as they are widely used in criminal activities and fraud, posing risks to investors.
Panetta also expressed worry about the environmental impact of bitcoin mining, due to its high electricity consumption. He believes that the cryptocurrency industry could hinder efforts for sustainable development and climate change mitigation, leading him to conclude that digital assets have no place in the financial system.
Christine Lagarde Shares Similar Views
ECB President Christine Lagarde has echoed Panetta’s sentiments, stating that digital assets are often used to evade sanctions. Lagarde believes that cryptocurrencies lack stability and security in the financial world, further adding to the skepticism surrounding their usefulness.
In light of these concerns, both Panetta and Lagarde urge the public to exercise caution and avoid investing in cryptocurrencies, including stablecoins and decentralized finance (DeFi) projects.
