- Isabel Schnabel, a Member of the Executive Board of the European Central Bank, do not believe in Bitcoin or any other cryptocurrency.
- She thinks that Bitcoin is a currency that is speculative and does not compare to fiat currency
Member of the Executive Board of European Central Bank (ECB), Isabel Schnabel, is not a Bitcoin supporter. She sees Bitcoin as a speculative asset that doesn’t meet the money criteria.
Isabel Schnabel Thinks Bitcoin does not consist of properties of real money
In her recent interview with a European media house Der Spiegel, Isabel said that in her opinion, comparing Bitcoin to a currency is just not suitable as it does not fulfil the basic properties of money. She further said that Bitcoin does not hold any real value since it is very speculative, and due to its volatile nature, the price fluctuations are wild.
But when asked about the trust factor of many in Bitcoin so much that it could affect the fiat currency Euro, she describes that trust will vanish in some time for the cryptocurrency. She reasons that bitcoin has a very fragile system which could result in disruption in financial markets.
She has also rejected the fact that fiat currency does not possess any intrinsic value. Since the Euro is supported by the ECB, which is highly trusted, it is one of the legal tenders, so no one will refuse to accept Euro. While on the other hand, Bitcoin has a different holding and has a different matter.
Schnabel has not been an ardent fan of cryptocurrency. She is following Christine Lagarde, President, ECB, who too does not believe in bitcoin and other cryptocurrencies, as they pose risks. She does not believe in technology much when it comes to finances. She feels that relying purely on technology and the flawed concept is no identifiable issuer or claim. Lagarde was also not favouring stablecoin as he believed that it would hamper financial stability and monetary freedom if adopted by people on a larger scale.
Digital Euro still at the planning stage
Nevertheless, the ECB is also planning to implement digital Euro to complement the cash, but nothing has been decided; it is still at the planning stage as per Schnabel. She said that a lot of work still needs to be done for the digital Euro to get in full swing. From the security point of view, it will take at least another four to five-year timeframe, which is required to examine what that means for the monetary system.
Last week, Lagarde informed that a digital Euro decision would be made in the next few months. However, the actual usage will take several years.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.