European Central Bank board member: Bitcoin does not have the basic characteristics of money

 

Isabel Schnabel, A German member of the European Central Bank (ECB) Board, described Bitcoin as a speculative asset that did not meet the definition of money.

Speaking to Der Spiegel, Schnabel said: “in our view, it is wrong to describe Bitcoin as a currency, because it does not bear the basic characteristics of money." said. Bitcoin is “a speculative asset with no underlying value” and is known for wild price fluctuations, Schnabel said.

Asked if many people's reliance on Bitcoin would harm fiat currencies such as the euro, an ECB board member said he was very concerned that confidence in cryptocurrencies could evaporate quickly. In his remarks, Schnabel argued that Bitcoin could lead to disruption in financial markets because it is “a very fragile system.”

“The Euro is supported by the ECB, which is a highly reliable institution, and it is a legal currency, " said Schnabel, who also rejected the claim that fiat currencies have no intrinsic value. No one can refuse to accept the euro. Bitcoin is a different matter.” was in the form.

Schnabel also touched on the issue of digital money and said that the ECB is evaluating issuing a digital euro that can complement the cash, but nothing has yet been decided. He also added that a period of four to five years is a reasonable time frame necessary to study what digital money means for the monetary system.