Bitcoin is in the final stages of becoming irrelevant for much of it, according to a newly released report by the ECB. Disadvantage. The report says that Bitcoin’s value stems from pure speculation and that its recent stability is the result of price manipulation.
Despite being touted as a revolutionary payment system and investment asset, the European Central Bank feels the long-term damage from promoting Bitcoin investment isn’t worth the risk. In fact, the statement went on to emphasize that Bitcoin’s path to irrelevance began long before the market turmoil caused by FTX.
ECB Executive Director Ulrich Bindseil and Advisor Jürgen Schaff said the authors of the report also said: He blamed the revolutionary misunderstanding, an issue shaping current cryptocurrency regulation, as a key reason preventing stricter regulation of Bitcoin. The duo noted that promising technologies do not necessarily guarantee added value or disruption.
Bitcoin’s apparent stabilization in value is likely the last artificially induced gasp before the cryptocurrency embarks on its path to irrelevance. #TheECB Blog Find out where Bitcoin stands amidst the widespread volatility of the crypto markets.
read more https://t.co/Hk1LuYX2de pic.twitter.com/I3Uidks8Xo
— European Central Bank (@ecb) November 30, 2022
The cryptocurrency community on Twitter reacted to the ECB report by making fun of a 2021 video in which ECB President Christian Lagarde made a bold prediction that inflation would fall in 2022.Their predictions are always spot on.”
If the ECB says so, it must be true 😬 In other words, the ECB clearly saw inflation coming and reacted in a timely manner. Their predictions are always spot on. 👌https://t.co/ZIZ03wyk2D
— Jan Wüstenfeld (@JanWues) November 30, 2022
The ECB has continued to monitor cryptocurrencies since outlining steps towards a digital euro in the final quarter of last year. However, the bank’s latest statement appears to dismiss Bitcoin as an investment asset after outlining its value as pure speculation.
Over the years, Lagarde has emphasized the need for Watchdog to strengthen itself as a global regulator to respond to people’s growing interest in cryptocurrencies. Lagarde argued at the November 28 hearing of the European Parliament’s Committee on Economic and Monetary Affairs that the ECB is already ahead of the curve when it comes to regulating cryptocurrencies.