The European Central Bank is criticizing bitcoin

The European Central Bank is criticizing bitcoin

Following the recent FTX collapse and liquidity scandal, European Union regulators have joined other global lawmakers in seeking clearer cryptocurrency guidelines and regulations.

The European Central Bank (ECB) published a blog post titled “Bitcoin’s last stand” on November 30, which summarizes the financial trajectory of bitcoin (BTC) in the current environment characterized by fluctuating prices. However, instead of painting a complete picture, which would therefore include the ups and downs of the cryptocurrency life so far, the article only shows its flaws.

In fact, authored by Ulrich Bindseil and Jürgen Schaaf, Director General and Advisor to the ECB, the article claims that digital currency is on the way “toward obsolescence”.

He also claims BTC is barely used for legal transactions and says it risks being “interpreted as an endorsement of current efforts by lawmakers around the world to regulate it.” The institute further warned banks about any interaction with digital currency, as it could damage their reputation.

On Twitter, the financial institution added that at this time, any possible consolidation in the price of bitcoin can only be the result of an artificial maneuver:

The apparent consolidation in the price of bitcoin is most likely an artificially drawn last gasp before the cryptocurrency goes down the path of irrelevance. The #ECB blog examines the state of bitcoin amid widespread volatility in cryptocurrency markets.
More information:

— European Central Bank (@ecb) November 30, 2022

However, where traditional centralized financial institutions can deny themselves cryptocurrency, the crypto community has proven that they are ready to draw answers to unbolt and protect their assets.

Thus, the ECB’s tweet alone received hundreds of responses in which the crypto community evaluated the items mentioned in the article and highlighted the backgrounds of its authors.

A commenter tweeted about Bindseil’s background and drew attention to the fact that there could be a conflict of interest, since the latter has written several articles on central bank digital currencies (CBDCs) and their use cases.

Author: Ulrich Bindseil

I’ll leave that here, so everyone understands the conflict of interest. #Bitcoin

— ₿aseload (@Endorsen) November 30, 2022

Another user said that while they tried to read it with an open mind, the paper’s claims that BTC was not used for legal transactions and instead for “illegal activities” were out of date.

I clicked on this article with an open mind, eager to change my mind.

But it opens with a proven lie

Most bitcoins are used for legal spending, profit speculation, and gambling, not “illegal transactions.”

We’re not in 2012 anymore… It’s a joke.

— FatMan (@FatManTerra) November 30, 2022

Others responded with the famous “BTC is dead” meme while posting the increasing value of the cryptocurrency. Some even went back to December 2021 to find the ECB’s erroneous forecasts of fall on inflation in 2022.

Likewise, many community responses referred to the decline in the value of the Euro as part of it comparison.

Also read: FTX collapse is pushing bitcoin holdings to new heights!

Meanwhile, digital currency exchanges continue to proliferate across the European Union. For example, recently the exchange Bitpanda received a crypto license to operate in Germany and Gemini received the green light in Italy and Greece.

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