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11/30/2022, 11:52 AM (Source: TeleTrader)
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ECB: Bitcoin stabilization is likely its last gasp

The European Central Bank said on Wednesday that the recent stabilization of Bitcoin's value is likely "an artificially induced last gasp before the road to irrelevance," which was "foreseeable" even before the collapse of the cryptocurrency exchange FTX. The ECB argued that Bitcoin's market valuation is "based purely on speculation" and that its use in real-world transactions has been limited because "real Bitcoin transactions are cumbersome, slow and expensive."

"Since Bitcoin appears to be neither suitable as a payment system nor as a form of investment, it should be treated as neither in regulatory terms and thus should not be legitimized," the ECB concludes, cautioning the financial industry not to promote Bitcoin investments. "The negative impact on customer relations and the reputational damage to the entire industry could be enormous once Bitcoin investors will have made further losses," it stated.

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