Topic: [2019-05-19] ECB: Crypto Has No Significant Implications (Read 140 times)

It doesn't function as a currency in the same way fiat does but we shouldn't look at every new concept through the existing ones. Bitcoin is a new form of money that adds decentralization and anonymity to the mix. Something like that will not look and act like fiat money and we should accept it.

You're right by saying that banks want to scare people away from bitcoin and make it seem worse and weaker than it is.

In this case, I see no reason not to trust the statement of the European Central Bank regarding the fact that cryptocurrency now does not affect the monetary policy of the states and, in general, the global financial system as money and means of payment. In my opinion, this bank would be primarily interested in pointing out a non-existent problem and, based on this, impose restrictions or even a ban on the use of cryptocurrency. Since the European Central Bank did not take advantage of this opportunity, it means that the problems with cryptocurrency among the banks do not really exist.

Central banks will only realize that Bitcoin can and does function as money when they have no other option than to hop on board, which in the end, the ECB doesn't seem to mind because they can print money like water and still buy up enough Bitcoin to remain relevant.

https://twitter.com/ecb/status/1105494215381913601

Bitcoin is indeed rat poison, poison that helps us get rid of rats like central banks with their toxic monetary policies.

Well, it's a fact that crypto has very little impact on the economy, and that few merchants accept it, and there even was some regression recently, like when merchants were dropping Bitcoin because of high fees, but overall we're moving towards more adoption, awareness is growing, community is growing, new crypto-oriented companies emerge. It will be a slow process, and maybe we'll never see a world domination scenario, but crypto isn't going to simply disappear.

I can only agree that the ECB as well as most other banks wants to diminish in every possible way influence of bitcoin, but on the other hand no article is missing out to mention Facebook Coin or some other centralized cryptocurrency. In other words bitcoin is not good because we can not control it, we can not print it and adjust its value the way it suits us.

When they say that crypto "do not fulfil the functions of money", they actually send message to people that this is not money and that we should not use it for payments. We should not be surprised by this attitude of the banking system, bitcoin is actually a danger for them - any money transaction that is excluded from their network means less profit for them.

It’s no secret that cryptocurrencies are not looked upon favorably by most major central banks across the world. Some crypto enthusiasts believe that central banks fear that the nascent technology could pose threats to existing monetary systems, while others believe that central banks will begin adopting the technology in the future.

Despite this, a recently released report from the European Central Bank offers a far more bearish assessment of the markets, largely writing off their utility and largely approaching them with what can be defined as a cavalier attitude.

"Crypto-assets do not fulfil the functions of money and, at the current stage, neither do they entail a tangible impact on the real economy nor have significant implications for monetary policy. The very low number of merchants that allow the purchase of goods and services with bitcoins indicates no influence of the most prominent crypto-asset on price-setting,” they explained.

Source: https://www.newsbtc.com/2019/05/18/european-central-bank-crypto-significant-implications-monetary-policy/


So even the European Central Bank is recognizing that even at today's state and the many achievements that cryptocurrency got so far, it is still a far cry from what it should be: as a currency that can be an influential in the flow of commerce on the global scale. Hence, ECB is not bothered at all not afraid of what cryptocurrency can do.

Do you agree with this assessment of ECB for cryptocurrency particularly bitcoin?