European Central Bank (ECB) Executive Board member Fabio Panetta has criticized Bitcoin and Ethereum, the two leading cryptocurrencies by market capitalization, for lacking intrinsic value.

Fabio Panetta explained that BTC and ETH are not suitable for performing basic monetary functions: making payments and settlements. Panetta noted that cryptocurrencies are mainly used for criminal activities and fraud, and crypto investors cannot count on protecting their interests in the event of loss of funds due to the uncertainty of cryptocurrency regulation.

Panetta also expressed concerns about Bitcoin mining, which is said to have a negative impact on the environment due to its high electricity consumption. According to Panetta, the mining industry can undermine international initiatives in the field of sustainable development. Therefore, cryptocurrencies have no place in the financial world, the official concluded.

Panetta has spoken out against the industry and discouraged the public from investing in cryptocurrencies on numerous occasions. He has previously said that stablecoins are not actually stable at all, even if they are pegged to government currencies, and that the DeFi sector lacks transparency.

His view is in line with that of ECB President Christine Lagarde, who also believes that digital assets are useless. Lagarde insists that cryptocurrencies are mainly used to circumvent sanctions.