- The European Central Bank criticizes Bitcoin, arguing that it failed to prove itself as a financial asset.
- The ECB officials allege the SEC’s Bitcoin ETF approval is “the naked emperor’s new clothes.”
- Charles Hoskinson slams the officials, referring to the community notes that laughed at ECB.
The European Central Bank’s (ECB) stark criticism and disregard for Bitcoin as a financial asset has recently created headlines, with the community condemning the post. Cardano Founder Charles Hoskinson wrote in his latest X post, “Community Notes just murdered the ECB.”
In a blog post on Thursday, ECB Director General Ulrich Bindseil and advisor Jürgen Schaaf argued that the largest cryptocurrency has failed to prove itself as an asset and investment. Adding that Bitcoin is still not used for legitimate transactions, ECB officials claimed, “The fair value of Bitcoin is still zero.”
According to their statements, the Securities and Exchange Commission’s (SEC) recent approval of Bitcoin ETFs is “the naked emperor’s new clothes.” They added, “The latest approval of an ETF doesn’t change the fact that Bitcoin is not suitable as means of payment or as an investment.”
Previously, in 2022, following the FTX debacle, the ECB published a post warning against the potential risks inherent in Bitcoin. In their recent post, the officials elucidated that the disadvantages of Bitcoin remain the same even after one year.
As per the ECB’s allegations, Bitcoin transactions are “inconvenient, slow, and costly.” In addition, Bitcoin is allegedly insufficient as an investment and poses security threats. The ECB officials also shed light on the environmental pollution caused by Bitcoin mining.
Nonetheless, the post received criticism rather than acceptance. The post’s community notes highlighted mainly four points, laughing at the bank’s approach to Bitcoin and romanticizing the cryptocurrency. The community still considers Bitcoin an open monetary protocol that benefits the environment. The community also stated that the Euro is losing its value against BTC, adding that “criminals” do not prefer Bitcoin.
Meanwhile, a Bitcoin proponent, Daniel Batten, addressed the ECB’s post as a bullish sign for Bitcoin. In his X post, Batten wrote that following the central bank’s previous post against the cryptocurrency, Bitcoin saw a substantial rally of 197%.
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