European Central Bank Unlikely to Ever Buy Bitcoin, Says Executive Board Member

According to Blockworks, the European Central Bank (ECB) is unlikely to ever buy Bitcoin, according to executive board member Isabel Schnabel. In a Q&A session, Schnabel stated that the ECB would not acquire the asset for its balance sheet. The ECB is responsible for controlling monetary conditions in the European Union countries that use the euro, with its US equivalent being the Federal Reserve led by Jerome Powell. Schnabel was nominated by the German government to serve on the ECB's executive board in 2019. The six-person committee is responsible for implementing monetary policy based on guidance given by the ECB's governing council. Schnabel has been known for her hawkish views on interest rate hikes during Europe's battle with inflation, though she recently reversed course on the subject. Schnabel's statement follows similar remarks from other ECB board members, such as Elizabeth McCaul and Fabio Panetta, who called for tougher regulation on cryptocurrencies and exchanges last year. The ECB is among several central banks exploring a central bank digital currency (CBDC), a digitized version of a fiat currency. However, the ECB is still in a "preparation phase" for its digital euro. While multiple European central banks have notable gold reserves on their balance sheets and have purchased more of the commodity in recent years, they have been slow to adopt Bitcoin, which some view as a digital equivalent to gold. Even with a potential spot Bitcoin ETF on the horizon, this seems unlikely to change, at least for now. Schnabel's post drew criticism from online Bitcoin enthusiasts, with one user predicting that her statement would age poorly.