European Central Bank ‘very unlikely ever to buy bitcoin’: Board member

Several central banks hold gold, but Europe’s won’t be buying“digital gold” anytime soon

article-image

travelview/Shutterstock modified by Blockworks

share

A potential spot bitcoin ETF would expose more traditional investors to the flagship cryptocurrency, but there’s one buyer they can rule out: the European Central Bank. 

ECB executive board member Isabel Schnabel wrote in a Wednesday morning Q&A on X that the bank “is very unlikely to ever buy Bitcoin” after being asked whether the ECB would acquire the asset for its balance sheet.  

The European Central Bank is tasked with controlling monetary conditions in the bloc of European Union countries that use the euro. Its US equivalent would be the Jerome Powell-led Federal Reserve.

Read more: Bitcoin ETF war enters end game: BlackRock, Ark cut planned fees

Schnabel was nominated by the German government to serve on the ECB’s executive board in 2019. The executive board is a six-person committee responsible for implementing monetary policy based on guidance given by the ECB’s governing council.

Schnabel has been known for hawkish views on interest rate hikes during Europe’s battle with inflation, though she recently reversed course on the subject.

Schnabel is the latest in a succession of ECB board members to speak publicly about crypto. Elizabeth McCaul and Fabio Panetta both called for tougher regulation on cryptocurrencies and exchanges last year. 

The ECB is among a slew of central banks exploring a central bank digital currency (CBDC), a digitized version of a fiat currency. The ECB is still in a “preparation phase” for its digital euro. Crypto boosters tend to pan CBDCs — which are regulated by central banks and may run on permissioned blockchains. 

Multiple European central banks have notable gold reserves on their balance sheets, with some purchasing more of the commodity in recent years. But central banks have been slow on the uptake of bitcoin, which some cast as a digital equivalent to gold. 

Even with a spot bitcoin ETF on the horizon, this seems unlikely to change, at least for now. Schnabel’s post drew ire from online bitcoin fans.

“This post will age terribly,” one X user wrote in response.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Unlocked by Template.png

Research

With the spot ETH ETF approval, the institutions are coming. stETH - given its dominance in marketshare, existing liquid market structures, and highly desirable properties - is poised for institutions.

article-image

NVIDIA’s historic run is only deepening the divide between mega-cap tech stocks and the rest of the market.

article-image

EIP-7702 was quickly adopted for the next Ethereum upgrade, but developers haven’t quite locked it down

article-image

Marathon Digital’s latest heating project in Finland part of broader vision to “drive the advancement of the digital asset compute industry,” CEO says

article-image

MicroStrategy announced that it bought nearly 12,000 more bitcoin from April to late June

article-image

Unpacking Trump memecoins and the Kraken/CertiK situation