ECB’s anti-Bitcoin stance draws community ire: ‘True declaration of war’

• ECB officers claimed that BTC’s rally will make non-holders and latecomers poor. 
• The crypto group criticized the report that referred to as for a coverage towards BTC. 

Over the weekend, the European Central Financial institution (ECB) hit the headlines following its prime officers’ anti-Bitcoin [BTC] report and requires its ‘disappearance.’

They claimed the BTC value surge would result in wealth redistribution from latecomers and non-holders to early adopters.

In keeping with the report, this could impoverish latecomers and holders, as early adopters would dominate holdings and wealth. 

Supply: SSRN

In keeping with ECB officers Jurgen Schaff and Ulrich Bindseil, non-holders ought to advocate for anti-BTC insurance policies or marketing campaign for it to ‘disappear’ altogether. A part of their analysis read, 

“In any case, present non-holders ought to realise that they’ve compelling causes to oppose Bitcoin and advocate for laws towards it, aiming to stop Bitcoin costs from rising or to see Bitcoin disappear altogether.” 

Is the ECB declaring struggle on BTC?

The crypto group slammed the report, whereas some warned it may sign the ECB’s struggle on BTC.

Tuur Demeester, a BTC analyst, claimed that the analysis was ECB’s declaration of struggle on the digital asset. He stated, 

“This new paper is a real declaration of struggle: the ECB claims that early #bitcoin adopters steal financial worth from latecomers. I strongly imagine authorities will use this luddite argument to enact harsh taxes or bans.”

Demeester cited the push by the authors for laws as one of many compelling causes for his projection. 

“Then they go on to openly advocate for laws … “to stop bitcoin costs from rising or to see bitcoin disappear altogether” in an effort to stop “the division of society.”

Supply: SSRN

On his half, Max Keiser, a BTC maximalist and senior advisor to El Salvador’s president Nayib Bukele on all issues Bitcoin, referred to the report because the ECB’s ‘failed IQ check’ on the digital asset. 

“Bitcoin is an IQ check. The ECB failed.” 

Nicely, this wasn’t the primary time the regulator has criticized BTC. In February 2024, it stated that the asset had no intrinsic worth and was a bubble that might finally burst and trigger huge social injury. 

Later in June, Fabio Panetta, a former ECB government and present Governor of the Financial institution of Italy, called for different banks to dam crypto because it was certain to fail.

In actual fact, the regulator even criticized the US transfer to approve spot BTC ETFs in Q1 2024. 

That mentioned, some seen the regulator’s anti-BTC thesis as an acknowledgment of the asset’s future explosive run.

In keeping with Plan C, a market analyst, BTC was the answer to the regulator’s cash printing (inflation) as a world easing cycle begins. 

“This new ECB paper additionally accommodates a hidden sign: ECB is aware of for a undeniable fact that “Bitcoin will rise for good” as a result of ECB is aware of for a undeniable fact that central banks should begin printing ungodly quantities of cash quickly, and ceaselessly.”