The European Central Bank [ECB], the central bank of the union of 19 countries in the European Union [EU], has stated that Bitcoin [BTC] is not money, despite its popularity in the continent. He further stated that they are within their rights “as a central bank” to print money and devalue currency.
In an #AskECB campaign on Twitter, the ECB aimed to address the concerns of their populace, but ended up riling the cryptocurrency community.
The dual and successive admissions paint a rhetorical and insightful picture of the relationship between the decentralized currency world and the banking elite. Decentralized currency evolved out of a rebellion against the corrupt government and banking elite, as currency issuing authorities hold complete and unchecked power over the money held by citizens.
Additionally, crypto-proponents are also opposed to these banking elites lambasting virtual currencies as “frauds” and “scams,” deeming them illegitimate forms of money. Increasing digital asset adoption and the surging popularity of virtual currencies has been ignored by governments and banks, who label them as the “currency of the Dark Web.”
This very principled debate about the nature of cryptocurrency was highlighted by Peter Praet, the executive board member and the chief economist at the Central Bank of the Union, who said,
The ECB, while admitting that blockchain technology was important for many industries, stated that cryptocurrencies cannot be deemed as “money.” It is an extension of a view held by many banking moguls like Jamie Dimon, the CEO of JP Morgan, and Warren Buffet, the CEO of Berkshire Hathaway.
20 minutes after the previous tweet however, the central bank replied to a question, asking where the ECB got the money for Quantitative Easing. QE IS a monetary policy where a central bank injects money into the economy to spur economic activity.
Praet stated via ECB’s twitter handle,
Virtual currency proponents have consistently opposed this power, as this reduces the value of the country’s fiat currency. The core reason why decentralized currency emerged, was to thwart the government’s power of devaluing money on a whim.
The ECB also replied to a question asking the central bank to “print money,” resulting in a similar consequence of devaluation of currency held, to which the Praet replied,
Many decentralized currency enthusiasts saw this ‘Central Bank Chronicle’ as evidence of the power that centralized authority has over its populace, and reflective of the fight the cryptocurrency world is waging to win back financial freedom.
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Bitcoin [BTC] Lightning Network has more active nodes than XRP, Litecoin and EOS combined
Graduate of Finance and Economics, interested in the intersection of the world of decentralized currency and global governance.