ECB Economists Claim Bitcoin’s Failure as Global Digital Currency, Face Backlash Over ETF Criticism

    ECB economists claim bitcoin's failure as a global decentralized digital currency, facing backlash over criticisms on ETF approval. Social media debates the accuracy of claims, with alternative perspectives emerging on bitcoin's role in the financial landscape.

    • ECB economists argue that bitcoin has failed to fulfill its promise as a global decentralized digital currency, with a fair value still deemed zero.
    • The recent approval of bitcoin exchange-traded funds (ETFs) by the U.S. SEC doesn’t alter the ECB’s stance on bitcoin’s shortcomings, emphasizing its inconvenience, slowness, and high costs.
    • The authors highlight environmental concerns, the potential for renewed boom-bust cycles, and collateral damage as reasons for their skepticism.
    • Social media reacts strongly, with some praising alternative viewpoints and criticizing the ECB’s stance as outdated and misleading.

    ECB Claims Bitcoin’s Failure

    The European Central Bank (ECB) has recently stirred controversy by asserting that bitcoin has failed in its mission to become a global decentralized digital currency. In a blog post titled “ETF approval for bitcoin – the naked emperor’s new clothes,” ECB economists Ulrich Bindseil and Jürgen Schaaf argued that despite the recent approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), the fair value of bitcoin remains at zero. The authors point to ongoing issues such as slow transactions, high costs, and limited use for payments outside criminal activities.

     Backlash and Alternative Perspective


    The ECB’s critique of bitcoin has not gone unnoticed, triggering a strong reaction on social media. Critics argue that the ECB’s stance is outdated, emphasizing the recognition of bitcoin by major global asset managers and its acknowledgment as a top-performing asset. Community Notes and prominent figures in the crypto space countered the ECB’s claims, pointing out the minimal percentage of cryptocurrency transactions related to criminal activity and the potential benefits of ETFs in providing broader access to bitcoin.

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