Share this article
ECB Official Says Energy-Intensive Crypto Should Be Banned
Fabio Panetta also said that investors have been caught in a "bubble."
Updated Apr 9, 2024, 11:40 p.m. Published Dec 7, 2022, 3:33 p.m.
Crypto assets should be banned if they are too energy intensive, European Central Bank board member Fabio Panetta said in a Wednesday speech that added to the ECB's previous criticism of private digital currencies.
Investors have been caught in the “textbook definition of a bubble,” lured by the promise of ever-rising prices, Panetta said in remarks that echo earlier criticism that the unregulated sector is like a “Ponzi scheme” and a “Wild West.”
STORY CONTINUES BELOW
Though the collapse of crypto exchange FTX has revealed flaws in accounting and risk management, Panetta said crypto would likely “continue to attract investors looking to gamble” – a risky activity he wants to keep sealed off from traditional finance.
"It is difficult to see a justification for the existence of unbacked crypto assets in the financial landscape,” he added, saying they are too volatile and inefficient to use for regular payments.
The FTX debacle will likely send investors toward decentralized exchanges, he said – adding that those exchanges will be harder to regulate and are liable to amplify financial shocks.
“Crypto assets deemed to have an excessive ecological footprint should also be banned,” he said, in a likely reference to platforms like Bitcoin that use an energy-intensive mechanism known as "proof-of-work" to validate transactions and secure their network.
The ECB's skepticism about crypto is nothing new. Two staffers last week said bitcoin (BTC) is on the “road to irrelevance.” Panetta is considering whether the central bank itself should issue a digital currency, and earlier Wednesday, he set out some of the criteria for apps and wallets using the digital euro.
Read more: Bitcoin's Last Stand: ECB Staffers Say the Crypto Is on 'Road to Irrelevance'
More For You
KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
What to know:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
More For You
December FOMC minutes show the Fed is worried short-term funding could seize up
Fed officials were focused less on rate moves and more on whether the financial system has enough cash to avoid sudden disruptions.
What to know:
- Fed officials have grown increasingly focused on whether the financial system has sufficient cash to function smoothly, even if interest rates remain steady.
- The December FOMC minutes show concern that short-term funding stress can emerge quietly and trigger sudden volatility.
- The minutes outline steps aimed at preventing cash shortages before seasonal pressures intensify in early 2026.
Top Stories
