According to Brussels, Bitcoin has a sealed fate that will take it to the outskirts of finance, this news immediately travels around the world but does not convince much.
The Twitter profile of the European Central Bank covers the topic of Bitcoin by delivering the sensational piece of news that: according to Brussels, Digital Gold will soon fade into the sunset.
In a tweet that leaves no room for interpretation, the ECB’s (@Ecb) profile sentenced:
“Bitcoin’s apparent stabilization in value is likely to be an artificially induced last gasp before the crypto-asset embarks on a path to irrelevance. #theECBblog examines where Bitcoin stands amid widespread volatility in cryptocurrency markets.”
The tweet follows an article linked just below in which two economists and journalists from the Central Bank’s blog explain the views of Lagarde and co.
Latest news from the ECB: Bitcoin continues to be a threat
In a four-handed article by Ulrich Bindseil and Jürgen Schaaf titled “Bitcoin’s Last Stand,” the European Central Bank’s blog tries to get across the notion that after declining from its highs, Bitcoin has stabilized in a price range around 16,000 euros that is the last bastion before its final demise.
This was not solely an all-out denigration of Digital Gold to the point of deeming it irrelevant, but an omen of the end of the run that would have been clear, according to the two economists, well before the FTX fiasco, which was considered only a building block toward the death of BTC.
The article continues with the old story that the currency has always been synonymous with crime and that it is slow to transact.
The two remarks leave much to be desired and give the article an outdated leitmotif that has long since been debunked.
Bitcoin transactions are now widespread even in everyday life to the point that in a McDonald’s in any country in the European Union, for example, one can get a coffee, as well as a Mc Menu, while safely paying in BTC with the same technical time it would take to do so with an ATM.
The article also includes space in the article to portray the Bitcoin world as an organization that permeates the centers of power, from large investors to various lobbies that, according to the authors of the piece, in turn promote the currency despite it being a flawed asset.
The piece concludes with a warning to the reputation of lending institutions that are considering interacting in various capacities with Bitcoin and cryptocurrencies in general.
According to the blog, banks that come into contact with the Digital Gold could face more damage to their image than the gains could offset in the short to medium term.
This aspect does not seem to have taken much ground in the banking industry.
Indeed, the largest companies in the industry already offer the option of using Bitcoin. As Bitcoin Archive points out on Twitter, these include Fidelity, State Street, Bank of New York Mellon, Deutsche Bank, BNP Paribas, Visa, and MasterCard to name a few.
Contrary to Bindseil and Schaaf’s claims, the opposite is happening.
Binance also tries to save traditional finance
Binance recently showed interest in Switzerland’s largest systemic bank, Swiss Bank, which could be rescued by Zhao’s very exchange.
Meanwhile, in ten years, when comparing the ratio between Euro and Bitcoin, it is possible to notice that the former has lost 99.92% to Digital Gold, not exactly a successful performance, yet this has not stopped the EU from calling BTC irrelevant.
Whether BTC will gradually replace fiat currencies, coexist with them, or perish as believed by the ECB, is only a matter of time.
It is precisely time, among other things, that informs us that Bitcoin’s next halving will be in 2024, a timeline close enough to recall these verdicts from Brussels and compare them with reality.