ECB against Bitcoin and for the digital Euro

If ordinary mortals dream of a simple but happy life, then Christine Lagarde dreams pink dreams about the introduction of the digital euro – CBDC. And not just dreaming! The European Central Bank, of which she is the head, is working hard to destroy Bitcoin and cryptocurrencies as quickly as possible.

And it can be real, and it’s very simple. CBDC – digital money of Central bank. .

And even a propaganda, or, call it a didactic machine has already been launched, ready to reveal the magnificent possibilities of the digitized euro, in the progression of the latest trick of the currency controller used in the European Union. Digital Euro? According to them, this will be an ideal solution for cross-border transfers. And it will be more than cryptocurrencies and some kind of Bitcoin!

Which, as we will see, seems to us somewhat inconsistent with the truth. And that this is a sign of the ECB’s fear of losing the opportunity to speak out against private projects that are already working and are already widely used.

European Central Bank: Digital Euro ranks first in transnational transfers

A propaganda machine has been launched, which ideally should lead to the fact that the digital euro will become desirable, if not mandatory for European citizens and everyone who wants to make transactions in euros. The last argument as an argument was transnational transfers, i.e. transfers to and from the European Union to third legal entities or individuals outside the SEPA system.

The Holy Grail of cross-border payments is a solution that allows such payments to be made immediately, cheaply, with universal coverage and using secure means such as central bank currencies.

No one will pretend to be surprised in front of an innkeeper who clearly tells us that the wine is very good, and the other alternatives sold on the contrary are actually very bad. All this with constant references to the Holy Grail, which will also tickle the most uncontrollable fantasies of conspiracy theorists.

Bitcoin vs CBDC

The Grail? A curious comparison, to say the least. Obviously, it will be ready in

the next 10 years.

However, after a search that began in the Middle Ages, the Grail finally became available. Rather, it will happen in the next 10 years, thanks to the magnificent fate and progress of the digital euro, which, not without a bit of malice, we consider desirable for anyone but the Central Bank itself

Then there is another Grail that cannot be ignored, and which in fact should have been addressed in the ECB report. What is the possible Grail? Obviously, Bitcoin, which is also, according to the data Coinmarketrate.com Thanks to the Lightning Network, it has become a potential player in this specific sector. This was also recognized by the ECB, which, however, has now backed down.

Bitcoin for Multinational Payments? Never!

In fact, there is openness, but given the conclusion, there is a reasonable suspicion that this is a kind of rhetorical tie to give the dignity of impartiality to the ECB’s own report, which you can see here.

And so…

• One system can be used for the whole world

Which is also recognized for Bitcoin by the European Central Bank. There is no need for intermediaries or complex implementations. Bitcoin is available to everyone without complications, and in this sense it is effective.

• Absence of intermediaries

This makes it a more secure system than others, where the risk of an intermediary failure is real. And, thus, another plus for Bitcoin from the ECB.

• The services offered by the exchanges are currently reliable

And we are talking mainly about the possibility of converting from, and into local currencies. Then this would not be a problem, and the picture regarding the possibility of using Bitcoin as an alternative for international payments would retain several very desirable features. However, there are also attacks on some features of BTC, which, at least according to the financial department, make this currency ineffective and undesirable.

• Consumption of PoW technology

Incredibly, the ECB report has another attack on Proof of Work, which is described as an expensive and wasteful technology.

We have always adhered and will continue to adhere to the position that these are the ideas of the insane. Who could be so crazy as to call armored glass and storage a waste of resources? Why is it still impossible to match Bitcoin consumption with security and decentralization, and such energy consumption can guarantee it (and which PoS can only dream of)?

The answer is actually there: in the almost complete absence of attack points on Bitcoin, you need to come up with something and insist on it until it becomes part of public opinion.

• Absence of KYC, AML

According to the Bank, part of the supposed usefulness of Bitcoin is due to the lack of control over money laundering and KYC, i.e. wallet identification. And here, too, a common lie is repeated, namely that Bitcoin is widely used for criminal activity. This was denied by several analytical companies, and even the US Treasury.

• Management issues

Conservatism in Bitcoin and its development is something positive, because it creates a base on which you can then develop at different levels, without the basic protocol changing with every gust of wind. For the central bank, on the other hand, this would be a problem.

And in conclusion, let us recall the quality of this criticism, both instrumental and political, which follows the course started many years ago by the former head of the institution.

• Volatility

In the paragraph dedicated to Bitcoin, the ECB succeeded in the delightful intention of saying one thing, and then the opposite of what was said another. Above, he praises the presence of intermediaries who can quickly convert BTC into local currency. He then criticizes the volatility of Bitcoin’s price, which makes it unsuitable for money exchanges. Here we are again bordering on science fiction, at least in the opinion of a sane person.

Do you want a spoiler? This is a battle the ECB cannot win

We are not talking about the battle for CBDC, which we will probably see in Europe, but not in other countries where people have already answered all the questions. For example, Japan, which has stated that this type of money will not bring any benefit. We are talking about the fight against Bitcoin.

Because if there’s one thing we’ve learned from history, it’s that if you have to lie to smear your opponent, it means you’re more than concerned about whether you can beat him properly.

When large institutions lie, we can only regret it, especially on the continent, which has always advocated, at least on paper, transparency and effective governance.