Key Points
- ECB officials called for a policy against Bitcoin, claiming its price surge would impoverish latecomers and non-holders.
- The crypto community criticized the report, with some interpreting it as ECB’s declaration of war on Bitcoin.
The European Central Bank (ECB) was in the spotlight recently due to its top officials’ negative stance on Bitcoin (BTC).
The officials’ report suggested that Bitcoin’s price surge could cause a wealth redistribution from latecomers and non-holders to early adopters. They argued that this could lead to the impoverishment of latecomers and non-holders, as early adopters would control most of the wealth and holdings.
ECB Officials’ Stance on Bitcoin
ECB officials Jurgen Schaff and Ulrich Bindseil suggested that non-holders should support policies against Bitcoin or campaign for its complete disappearance. They stated that non-holders should oppose Bitcoin and advocate for legislation against it to prevent Bitcoin prices from rising or to see Bitcoin disappear altogether.
The crypto community criticized this report. Some even suggested it could be a sign of the ECB’s war on Bitcoin.
Crypto Community’s Response
Tuur Demeester, a Bitcoin analyst, claimed that the research was the ECB’s declaration of war on Bitcoin. He cited the authors’ push for legislation as one of the compelling reasons for his projection.
Max Keiser, a Bitcoin maximalist and senior advisor to El Salvador’s president Nayib Bukele on all matters Bitcoin, referred to the report as the ECB’s ‘failed IQ test’ on Bitcoin.
This wasn’t the first time the ECB has criticized Bitcoin. In February 2024, it claimed that Bitcoin had no intrinsic value and was a bubble that would eventually burst, causing significant social damage.
In June, Fabio Panetta, a former ECB executive and current Governor of the Bank of Italy, called for other banks to block crypto as it was bound to fail.
The ECB even criticized the US’s decision to approve spot Bitcoin ETFs in Q1 2024. However, some saw the ECB’s anti-Bitcoin stance as an acknowledgment of the asset’s potential for a future explosive run.
Plan C, a market analyst, suggested that Bitcoin was the solution to the ECB’s inflation issue as a global easing cycle begins. He stated that the ECB knows that Bitcoin will rise for good because it knows that central banks will have to start printing large amounts of money soon, and forever.