- In response to the ECB claiming that Bitcoin is too costly and falls victim to illegal transactions, the X community has launched a counterattack.
- Hoskinson quoted details shared through the X community notes feature in the ECB’s post, stating, “The notes from the community just murdered the ECB.”
- The notes highlighted that criminal transactions involving the Euro (EUR) constituted 1% of the EU’s GDP in 2010, equivalent to 100 billion euros.
Charles Hoskinson backed the European Central Bank’s defenses against criticism of Bitcoin.
Hoskinson Supports Defenses Against Bitcoin Doubts
Charles Hoskinson, the founder of Cardano, supported the strong defense against the continuous skepticism of the European Central Bank (ECB) towards Bitcoin (BTC) by the X community. Following the ECB’s claim that Bitcoin is too costly and falls victim to illegal transactions, the X community launched a counterattack.
Hoskinson supported the strong defense against the continuous skepticism of the European Central Bank (ECB) towards Bitcoin (BTC) by the X community. The X community launched a counterattack after the ECB claimed that Bitcoin is too costly and falls victim to illegal transactions.
Quoting details shared through the X community notes feature in the ECB’s post, Hoskinson stated, “The notes from the community just murdered the ECB.” The response from the X community utilized data from the same Chainalysis report, which was mentioned to deliver a significant blow to the ECB’s accusations against Bitcoin.
The notes from the community highlighted that only 0.34% of the transaction volume with cryptocurrencies in 2023 could be associated with criminal activity, and Bitcoin’s involvement in criminal activity was significantly lower at 25%. Additionally, the notes emphasized that criminal transactions involving the Euro (EUR) constituted 1% of the EU’s GDP in 2010, equivalent to 100 billion euros.
This defense comes at a crucial point considering the ongoing skepticism of the ECB despite the approval of Bitcoin ETFs by the US Securities and Exchange Commission (SEC). The ECB emphasized the prevalence of Bitcoin in money laundering, referencing the 2024 Chainalysis report.
They also mentioned that criminal addresses transferred $23.8 billion in cryptocurrencies in 2022, which increased by 68% compared to the previous year. Furthermore, they noted that nearly half of these funds were laundered by crypto exchanges despite regulatory compliance.
What Claims Did the ECB Make Against Bitcoin?
European regulators expressed skepticism towards Bitcoin despite the approval of ETFs in the country. In their recent reports, the ECB reiterated its concerns by highlighting the weaknesses of Bitcoin as a digital currency and an investment, despite the approval of ETFs.
This situation was a setback for enthusiasts expecting a change in perception with the launch of Spot Bitcoin ETFs. The ECB, by likening it to “The Emperor’s New Clothes,” rejected Bitcoin’s failure to become a global decentralized digital currency and its sensitivity to fraud and manipulation. They also warned about the high costs, slow transaction speeds, and limited use for legitimate transfers associated with cryptocurrency.
The ECB does not seem convinced by the SEC’s approval of Bitcoin ETFs, rejecting it as akin to “The Emperor’s New Clothes.” Despite Bitcoin being recognized as legal tender and receiving state support in El Salvador, the ECB report stated that cryptocurrency could not be widely adopted as a payment method.
Regulators pointed out that Bitcoin transactions for legitimate purposes are rare, excluding criminal activities on the dark web. They added that efforts to encourage its use, such as offering free BTC to citizens, have failed to gain widespread adoption.
