Topic: Central bank and it ignorance on Bitcoin - page 4. (Read 656 times)

Well, I think that the problem is that the central banks governors are misunderstanding decentralized cryptocurrency. I did see the news about the Hungary’s central bank governor who was calling on the EU to ban crypto mining and everything cryptocurrency. Most of them have been like this right from time and they are always making moves that would make leaders to ban cryptocurrency, but over the years cryptocurrency especially Bitcoin has stood strong, and even being accepted in a lot of countries.

I believe that their plan of trying to stop Bitcoin and banning it in their countries is not going to workout. Bitcoin will still continue its growth, because I believe that there are people who truly acknowledge it and as time goes on those who don’t understand what it is all about will also get to know it.

I think using the word ignorance doesn't explain the reason why any government will ban Bitcoin mining and trading despite all the thousands of jobs create through Bitcoin, other activities it generates, and the trend it posed during the total lockdown. I believe the only reason any government will truly ban Bitcoin is because it is decentralized, autonomous, and consensus aspect.

I think a lot of people will need a third party to control their money, even if Bitcoin becomes truly mainstream.

Central banks will continue to exist in our lifetime, but Bitcoin will continue to grow each year and eventually will establish itself as a third way of payment: Cash, Card, Bitcoin.

There will be pros and cons for each method, some people will prefer different ones at different times.

They want to ban bitcoin because they don't like it. Bitcoin threatens them. If bitcoin becomes mainstream, why would anyone would want to use the bank when everyone can be their own bank? No third parties involved and you can do whatever you want with your own coins. You don't have to answer to anyone when you will want to spend or move your coins. The central banks won't ban bitcoin but they will eventually integrate crypto currencies to their system (which will make crypto currencies centralized if people choses to take their service).

A fear that Bitcoin becomes their threat to the financial system, that's is normal for those countries that didn't understand what is Bitcoin and how it is useful and not become a threat.  Yes, that's a challenge for them on how to enforce regulation since we know that this technology isn't regulated or can't be regulated.  That's the point of view of the central banks towards Bitcoin but when they understand, it will surely change their mind, look at those big giant companies who criticized Bitcoin before, Google, Facebook, and even Youtube but now, they are fully accepted Bitcoin.

Possible from time to time, if their people keep using it without knowing them and knowing the fact that controlling Bitcoin is only foolishness might change their mind towards adoption.

if it is, maybe only some countries have unqualified economists and don't know about how Bitcoin operates. Developing countries have now entered a new era and have begun to enforce strict regulations on bitcoin. The regulation gives little room for bitcoin or cryptocurrency to be accepted as a commodity. the product of ignorance or poverty occurs in several countries and that too has found some solutions.

They can keep on what they're doing about discrediting bitcoin. That's all they can do for now but just as the other financial institutions that are wisely adopting.
They've realized that it's not going to be a wise solution while bitcoin is thriving. The best solution for them is to just adopt and accept it, there's no need for them to think of such matters against bitcoin since everyone is starting to learn and know more about it.

Many countries', especially in in developing nations are managed by unqualified and highly ignorant economist. They were appointed just for political patronage or tribal sentiments. Most of them are parochial and archaic and are not willing to learn.

They lack understanding of how BTC operates, hence to cover-up their ignorance they make decisions based on sentiments and hear says. Until they allow refined, informed and globally connected mind to run their economy these nations would keep wallowing in the product of ignorance which is poverty.     

Winning the war against Decentralized Finance (DeFi) and Bitcoin are two different things.

I don't think the banks have anything against DeFi on Ethereum. Its far more easier to regulate and bring to the mainstream as it is already pretty centralized. There are a few top API providers that serve as the backbone infrastructure for every product out there. They can easily get particpants' information from those centralized services. So they would in fact be hailing DeFi rather than fighting against it.

When it comes to Bitcoin, that is definitely a pain point. Bitcoin is "money" that they have zero control over in terms of issuance and interest rates. Bitcoin doesn't treat the central bank any differently than it does you and me. That is scary for organizations, institutions and whole academician/ economist communities who have built decades worth of careers and make millions in consultation fee to keep the current system aligned towards high growth (at the expense of those at the bottom) as well as provide a sense of policy stability to the highly sentimental markets that are run by a great many number of players.

I don't think anybody can blame them for being extremely cautious or wary of it. Bitcoin threatens to provide an alternative as well as a disruption. Thus, then banks will never adopt Bitcoin or give it acceptance. Its the people who have to start saving their share of "Digital" gold and then wait for the banks to grow themselves around this new phenomena rather than run scared due to its novelty.

You can't compare Russia with other free countries. Russia's economy is a closer one and their only major import is weapons. So they way Russia manages their wealth, can be very different than many other countries.

Also when it comes to Central Bank's views on cryptocurrency, it was never positive. I didn't see a single Central Bank till date, which spoke positively about bitcoin. Because they know bitcoin attacks the very foundation of centralized banking system. So in terms of innovation and adaptability, they will loose relevancy for sure!

The confrontation between the central banks of states and decentralized cryptocurrencies will be for a long time. Cryptocurrency, of course, is not liked by banks, because they lose their complete dominance over citizens in the financial sector, and also lose part of their earnings. Therefore, they will continue to discredit the cryptocurrency. However, the cryptocurrency is spreading relatively quickly around the world and therefore it is becoming increasingly difficult to ban it. After all, very smart and influential people also invest in cryptocurrency. But on the other hand, central banks also have nothing to fear. They, being actually a part of the state, are under its reliable protection. Therefore, it will be better if banks and cryptocurrencies learn to coexist peacefully.

The central banks' employees are usually prominent names from the commercial banking system, usually older ones. They have proven in many occasions that they don't understand bitcoin and see it as an enemy.

There are too few who have understood the potential of Bitcoin.
There are too few who have understood that Bitcoin can be traced, hence the risks aren't so big.
There are too few who have understood that they can earn big if they embrace Bitcoin instead of fighting it.

Most have the old/obsolete thinking in a Warren Buffett style. They don't understand technology, they are afraid of technology, they will most probably advise against it.


Bitcoin is young, while these decision makers won't get younger. The views will change, if not with this generation of heads of central banks, then with the next one. But we need a little more patience.

In the case of Russia, it was a bluff: Russian government to legalize its crypto economy

Bitcoin has come in handy for them now that the US is threatening to take them out of the SWIFT system.

As for the rest of the central banks, I think they will eventually even buy Bitcoin for their reserves. It won't be soon, but they will. When the Bitcoin was born, they didn't even give it any importance. When Bitcoin became bigger they realized the competition it posed and associated it with fraud and scams but they realized they could not stop it and in the end it has been regulated around the world. Now financial institutions that previously associated Bitcoin with scams are preparing custodial services to offer, Bitcoin ETFs, etc. The last step will be for them to buy/mind bitcoin.

They are not ignorant about Bitcoin, they just know that they are not part of its system. Not knowing that they are also the reason why people now prefer Bitcoin because of the issues with the current banking system. People all over the world don't have access to banking because of the requirements they ask before someone could even have an account.

I didn't really see any link where EU is calling a total ban on Bitcoin mining. If it's possible there in EU, it might just be done in the US as well. And this would be an economic war again for the Latin countries that are adopting Bitcoin like El Salvador.

Things are more complicated than that. There are multiple cases that decision makers in EU are concerned about and each are different. For example there is a global rising concern over the token scams and money that is being laundered using tokens (these days NFTs) that leads to talks about banning trading of "altcoins" not bitcoin.

The mining concerns in EU mostly come from the fact that most of EU has been struggling to keep the lights on and there is a rising concern about increasing gas and other fuel costs that increases the electricity cost and the ability of producing it. The uninformed EU decision makers think banning bitcoin "mining" would alleviate the situation.

I don't think bitcoin has that capacity yet. It is too small and too little adopted to do that.

Bitcoin already is a global currency, I think you mean "when bitcoin reaches mass adoption". Neither banks nor the government can do anything about the inevitable, they can only make it slower.

Bitcoin is already a global currency if you look at it. Is there a continent on the face of the earth that Bitcoin is not known? or how many countries are there that still don't know about bitcoin even if it is not legal there? So my question is what do you mean by global currency? If you mean like a global legal tender then there is going to be an issue because that wouldn't be the case however, I believe that the Central Banks are the ones complicating the issue. Even all the Michael Saylor like Bitcoin investors still have fiat-based enterprises that deal with the banks and it is not possible for everyone to go bankless, so I say, the banks are just creating a problem that is not there.

I think we already know what the answer is.

If the so-called banks were not being threatened by Bitcoin, do you think they would be talking of banning it. The fact that they are feeling the impact of Bitcoin even before being fully adopted says a thing or two about them thinking of becoming less relevant.

I will start by saying that Central Banks are not ignorant on Bitcoin otherwise they would not mind, their reaction to BTC is what you would expect them to do if they are fully aware of what Bitcoin is and the threat it posed to their ability to carry out their operations effectively.
However Central Banks can not stop the adoption of BTC because it is already too late for them but their policies through misinformation and disinformation campaign will discourage some individuals from using BTC.
With the advent of P2P form of Crypto to Cash and Cash to Crypto, I can boldly say that the Central Banks lost already but since they are backed by the instrument of the state, both the Central Banks and Bitcoin will continue to remain relevant

Bitcoin is already being adopted globally and about your first question, that's why they intervene and impose or suggest a ban that's related to it. There is one thing that they're forgetting about this matter. There's no way to stop the global adoption of bitcoin, they might ban it from the north but it's going to be adopted and freely used in the south. And that's the actual thing that's happening today, bitcoin's community is going bigger and bigger and they can't stop and deny that fact.

Bitcoin as a digital decentralized currency have been widely criticized by many banks and other financial monolithic characters who have been on for front of global financial system, the latest being the call of central banks governors to the EU for the total ban of bitcoin mining and trading ,this also came a week after the Rusia central bank governor advised the President against cryptocurrency adoption.
This have proven to a large extent the political undertone as regards to the central banks position on compartitors such as bitcoin having the capacity to transform the economy of a nation,state or region as a whole, what are the possibilities of central banks governors winning the war against the decentralized finances or will the central banks looses it relevancy when Bitcoin finally become a global currency.