On the ECB Blog, Ulrich Bindseil and Jürgen Schaaf recently wrote a strong criticism of Bitcoin, stating that it has not lived up to its potential as a worldwide decentralized digital currency. The article “ETF approval for bitcoin – the naked emperor’s new clothes” was released on February 22, 2024, following the recent approval of spot ETFs by the US SEC. The author criticizes the ECB’s repeated attempts to discredit bitcoin. The ECB’s statement on X (formerly Twitter) condensed the blog’s feelings, asserting that Bitcoin has not succeeded in becoming a worldwide decentralized digital currency, but has instead been plagued by fraudulent activities and manipulation. The approval of an ETF does not alter the fact that Bitcoin remains expensive, sluggish, and inconvenient. Bindseil and Schaaf claim that BTC has not gained widespread acceptance for legitimate transactions and is not a viable option for either making payments or investing money. Critics of cryptocurrency argue that it does not provide any income, profits, or social advantages, and is harmful to the environment because of the energy-intensive process of mining. Even though the SEC approved BTC spot ETFs, which some viewed as a sign of investment security and potential price increase, officials at the ECB still believe that Bitcoin has no inherent value. The recent increase in BTC prices is being labeled as a temporary recovery before further decline, with concerns raised about the speculative market driving the price up and the possibility of another cycle of rapid growth followed by a crash. There are warnings about the negative consequences of this cycle, such as environmental damage and wealth redistribution from less experienced investors. The blog also discusses the use of Bitcoin for criminal activities like money laundering, funding terrorism, and carrying out ransomware attacks, noting a continued increase in such transactions. ECB officials are critical of the regulatory methods in Europe and the US, noting that the decentralized nature of Bitcoin has caused a lack of effective regulation. The blog also points out the paradox of Bitcoin, which was created to avoid traditional financial systems but now relies on traditional intermediaries like ETFs to appeal to a larger investor base.