Officials of the European Central Bank: Bitcoin is not used in legal transactions

Officials of the European Central Bank on Wednesday, November 30, 2022 (9 December 1401), as they asked the regulators not to give legitimacy to cryptocurrency tokens under the pretext of innovation, amid a series of severe criticisms of the cryptocurrency industry and without providing any court-friendly support, claimed that Bitcoin in “Legitimate transactions are not used,” fueled by speculation, and the recent erosion in its value suggests it’s headed nowhere.

Ulrich Bindsil and Jürgen Schaff in weblog The European Central Bank wrote that while Bitcoin’s value has stabilized around $20,000, “it was given a last gasp before entering the path to nowhere, before FTX crashed, sending Bitcoin below $16,000.” It was predictable to reach $ 000.

The European Central Bank’s blog further states that it believes Bitcoin’s design is abstract and has “technically” shortcomings that make its use as a payment method questionable. Furthermore, “actual Bitcoin transactions are cumbersome, slow, and expensive, and Bitcoin has never been exploited in any significant amount for legitimate real-world transactions.”

Bindsil and Schaff further wrote that Bitcoin does not generate turnover like the real estate market, does not have profits like stocks, and cannot be productive like commodities and have social benefits like gold. Therefore, the market value of Bitcoin is purely based on guesswork.

The European Central Bank’s argumentative position is devoid of reliable statistical data and appears to be based on a bias away from logic and heightened emotional stimulation. As a result, these positions have naturally been criticized by many enthusiasts of the technology world.

In a series of tweets, investor and commentator Joel John pointed to a report by security auditing firm Chainalysis, which found that only 0.15% of cryptocurrency transactions were linked to criminal activity, compared to 5% for traditional currencies. will be

Joel John wrote on his Twitter:

I don’t mean that the crypto world doesn’t have spoilers. We also have obsessive and meticulous people, and legislators are also an important part of this collection. But, a little more effort on how to cover [قانونی] This industry can help us move forward. Prejudice is easy; But it will not make progress.

The European Central Bank also claimed that Bitcoin has repeatedly benefited from a wave of new investors, manipulations by individual exchanges or stablecoin providers; But such strategies will not be able to provide stabilizing factors.

Additionally, European bankers say crypto-related companies have arranged financial support from lobbyists to influence lawmakers and regulators; But their efforts have not been successful, because even lobbying activities need a reasoned board to be effective.

The European Central Bank believes that the current regulation of cryptocurrencies is partly based on misconceptions. The belief that space innovation should be given at any cost remains stubbornly. Given that Bitcoin runs on the new technology, distributed ledger (DLT) and blockchain, it has a high potential for transformation. First, these technologies have so far provided limited value to society, no matter how great the future expectations. Secondly, using technology with the hope of its future cannot provide a sufficient condition for relying on the added value of the product.

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Several other central banks around the world have expressed concern about the adoption of cryptocurrencies and the expansion of their business in the recent quarter. “Cryptocurrencies have no intrinsic value and don’t even count as price bubbles,” said RBI Governor Shaktikanta Das earlier this year. The South Asian nation of India will begin a trial for retail cryptocurrencies on Thursday, December 1, 2022, with the aim, among other things, of protecting citizens from the volatility of private cryptocurrencies.

Bindsil and Schaff warned financial industry players, many of whom are prominent backers of crypto companies, to be wary of long-term reputational damage as bitcoin investors suffer more losses.

This recommendation is likely to apply indirectly to Goldman Sachs, Morgan Stanley, HSBC, Wells Fargo, Citigroup, Bank of America, Deutsche Bank, UBS, Commonwealth of Australia, Bank of Bangkok and Development Bank of Wales, among others, from one or more Crypto company has supported.

What is your opinion of Zomit users about cryptocurrency and its appropriate financial rules?

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