Bitcoin falls short as global digital currency, ECB says
The post Bitcoin falls short as global digital currency, ECB says appeared on BitcoinEthereumNews.com. Economists with the European Central Bank (ECB) contend that Bitcoin’s (BTC) limited usage disqualifies it as a legitimate form of currency. Zero value On Feb. 22, ECB director general for market infrastructure and payments Ulrich Bindseil, along with the bank’s advisor for market infrastructure and payments, Jürgen Schaaf, published a co-authored blog post titled: “ETF Approval for Bitcoin – the Naked Emperor’s New Clothes.” The two economists tee off by rebuking U.S. regulators who in January approved spot exchange-traded funds (ETFs) for Bitcoin. “For disciples, the formal approval confirms that Bitcoin investments are safe and the preceding rally is proof of an unstoppable triumph. We disagree with both claims and reiterate that the fair value of Bitcoin is still zero,” Bindseil and Schaaf write. Transactions involving Bitcoin are still inconvenient, slow, and costly, they argue. Furthermore, they contend that Bitcoin is still primarily utilized for payments in illicit activities, with minimal legitimate use outside this realm. As a result, Bitcoin fails to fulfill its promise of becoming a global decentralized digital currency due to its susceptibility to fraud and manipulation, they said. The authors referenced a previous ECB blog post from November 2022 that debunked what they maintain are the false promises of Bitcoin. In their analysis, they emphasized that Bitcoin has failed both as a global decentralized digital currency and as a financial asset with a continually rising value. The ECB also cautioned against the risks to society and the environment if Bitcoin were to experience another bubble, especially if supported by legislators who might inadvertently encourage its growth instead of imposing necessary regulations. The blog post generated significant attention on social media from those within the crypto industry. The ECB is not the only financial authority to question Bitcoin’s potential as a valuable digital currency. Neel Kashkari, President…
The post Bitcoin falls short as global digital currency, ECB says appeared on BitcoinEthereumNews.com.
Economists with the European Central Bank (ECB) contend that Bitcoin’s (BTC) limited usage disqualifies it as a legitimate form of currency. Zero value On Feb. 22, ECB director general for market infrastructure and payments Ulrich Bindseil, along with the bank’s advisor for market infrastructure and payments, Jürgen Schaaf, published a co-authored blog post titled: “ETF Approval for Bitcoin – the Naked Emperor’s New Clothes.” The two economists tee off by rebuking U.S. regulators who in January approved spot exchange-traded funds (ETFs) for Bitcoin. “For disciples, the formal approval confirms that Bitcoin investments are safe and the preceding rally is proof of an unstoppable triumph. We disagree with both claims and reiterate that the fair value of Bitcoin is still zero,” Bindseil and Schaaf write. Transactions involving Bitcoin are still inconvenient, slow, and costly, they argue. Furthermore, they contend that Bitcoin is still primarily utilized for payments in illicit activities, with minimal legitimate use outside this realm. As a result, Bitcoin fails to fulfill its promise of becoming a global decentralized digital currency due to its susceptibility to fraud and manipulation, they said. The authors referenced a previous ECB blog post from November 2022 that debunked what they maintain are the false promises of Bitcoin. In their analysis, they emphasized that Bitcoin has failed both as a global decentralized digital currency and as a financial asset with a continually rising value. The ECB also cautioned against the risks to society and the environment if Bitcoin were to experience another bubble, especially if supported by legislators who might inadvertently encourage its growth instead of imposing necessary regulations. The blog post generated significant attention on social media from those within the crypto industry. The ECB is not the only financial authority to question Bitcoin’s potential as a valuable digital currency. Neel Kashkari, President…
