On Wednesday, two ECB officials trashed Bitcoin in an article.
ECB Exec said Bitcoin was heading for a dead end even before the crash of Sam Bankman-Fried's FTX.
Bitcoin's technological flaws make it a suspicious means of payment, they wrote, and transactions are delayed.
Crypto skeptics, with top executives going so far as to suggest that crypto should not be legitimized by any government or major financial institution.
In an article published on its website, the European Central Bank launched an unprecedented critique of Bitcoin. Both Ulrich Bindseil and Jurgen Schaff of the ECB Market Infrastructure and Payments Division emphasized Bitcoin's failure to replace or improve the monetary system.
According to their blog 'Bitcoin's Last Stand,' which was published on November 30, Bitcoin has never been utilized for significant real-world transactions. This statement prompted some to wonder what spurred the ECB to anticipate that Bitcoin is unsuited to be included in the financial system.
Both Bindseil and Schaaf noted that Bitcoin's conceptual design and technology limitations render it unfit for payment. They added that Bitcoin is a terrible investment because it does not create cash flows or dividends.
The two issued warnings against mistaking an increase in regulation for endorsement. Saying the rapidly developing crypto lobbying class is aiming to promote crypto as just another asset class worthy of inclusion in investor portfolios. Despite the fact that Bitcoin has stayed relatively stable after the initial November meltdown, the authors believe this is ‘an artificially-induced last gasp before irrelevance.’
Bindseil and Schaaf concluded their article by calling Bitcoin's energy-intensive proof-of-work network an "unprecedented polluter." They singled out "mountains of hardware waste" from Bitcoin mining and warned banks that promoting the digital currency would cause massive "reputational damage."
Bindseil and Schaaf's article echoes the views of Peter Schiff, Charlie Munger, and the hundreds of so-called bitcoin obituaries published over the years. Despite the ECB opinion post, many individuals, research publications, and companies strongly disagree with the two central bank executives.
The comments from ECB executives have no influence on Bitcoin’s price. Meanwhile, the token has shown positive momentum over the last two days. Yesterday, the token broke through the $17,000 resistance level.
Experts predict that tomorrow's scheduled Non-farm Employment Change Report will trigger BTC to surge above the $18,000 level. However, only time will tell whether BTC will break through that level or change its bullish momentum. At the time of writing, BTC was trading at $17,112, gaining 1.5% in the last 24 hours.
What are your thoughts on the views of ECB top executives on Bitcoin? Share your views in the comment section below.
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