According to U.Today, Fabio Panetta, a member of the European Central Bank's (ECB) Governing Council, criticized Bitcoin and Ethereum, the two largest cryptocurrencies, during a recent conference in Rome. Panetta stated that these leading cryptocurrencies have no intrinsic value and are incapable of performing monetary functions. This is not the first time Panetta has expressed his skepticism towards the cryptocurrency industry. In 2021, he criticized the environmental impact of Bitcoin mining, claiming it could undermine global sustainability efforts. He even referred to Bitcoin as 'a very dangerous animal' in an interview with the Financial Times.
Panetta also claimed that cryptocurrencies have no place in the financial landscape. He criticized the lack of investor protection and the prevalence of crypto crime. His views align with those of ECB President Christine Lagarde, who also expressed negative views on digital assets, deeming them worthless in 2022.
In the same conference, Panetta dismissed concerns about persistent services inflation. He supports a gradual reduction of interest rates following the ECB's rate cut in June, after seven consecutive months of lower inflation figures in the eurozone. This move could potentially benefit Bitcoin due to the ECB's looser monetary policy. However, the U.S. Federal Reserve has not yet begun to cut rates.