Bitcoin was born at a time when the fragility of the world economy was severely exposed. The world’s most popular cryptocurrency has its own exponents as well as its own critics.
While global Bitcoin proponents believe that the digital currency will deliver financial salvation, their critics, on the other hand, describe Bitcoin as an illusion; and more so, a scam.
In particular, the European Central Bank (ECB) has been a strong advocate of bitcoin and other digital currencies in general. However, its critics are equally huge.
During a recent panel discussion held in Vienna, Austria, ex-Director General of the European Central Bank, Aurel Schubert debated on the most valuable cryptocurrency. He said that within no time bitcoin will only be on display in the ‘Museum of Illusion’. He stated:
“Maybe sooner or later, Bitcoin will be one of those objects on display in the Museum of Illusions. I am sure central banks and also the fiat money, I am convinced it will not be in an exhibition any time soon in the Museum of Illusions.”
Bitcoin sounds like a ponzi scheme
In addition, the former Director-General of the ECB stated that it is clear that the digital market is demanding fast, secure and less costly remittance solutions that are fully available.
In addition, he acknowledged that the available local payment solutions are categorized and do not offer what the global economy actually needs.
Nevertheless, Schubert was of the conviction that the largest cryptocurrency is neither a solution nor a currency. More so, he went on to claim that bitcoin sounds like a Ponzi scheme.
He said that the core of the bitcoin market was on making capital gains. In particular, he questioned the high cost of processing bitcoin transactions.
“But it is clear that the digital market wants and demands some quick, safe, cross-border payment solution available 24/7, and smooth exchanges. We have current local payment solution systems, however, they are not global. They are also compartmentalized, and maybe they are not fit for the globalized economy.”
ECB’s rich history of BTC critics
Indeed, Aurel Schubert’s criticism of the popular digital currency does not come as a rude awakening to the cryptocurrency community.
The ECB has a rich history of cryptocurrency critics as this is not the first time digital currencies; have drawn criticism from individuals tied to the financial institution.
Back in 2019, the former president of the European Central Bank; Jean-Claude Trichet lambasted BTC at a panel discussion in Beijing, China. The former ECB executive poured cold water on the digital currency claiming he doubts BTC is the future of money.
Trichet echoed similar sentiments as shared by central banks about the menace that digital currencies pose to traditional currencies. He was worried that cryptocurrencies may disrupt the financial system of the world; decentralize traditional currencies and inhibit central authorities from steering the value of money.
Furthermore, back in September 2019, an ECB board member, Benoit Soeure claimed that the digital currencies could “challenge the supremacy of the US dollar.”
Regardless of the highly negative sentiments about cryptocurrencies, central banks across Europe are developing digital versions of their fiat currencies.
Countries such as Sweden and Ukraine have developed their own Central Bank Digital Currencies (CBDC). Bank of England’s Mark Carney has recently hinted on the development of a digital reserve currency.