In recent days, Bitcoin has seen its status as a decentralized and disruptive asset questioned by actors in the traditional banking and financial system. This, now that analysts from the European Central Bank (ECB) and the Minneapolis Federal Reserve of the United States, once again placed the pioneering digital currency under their critical spotlight.
A document published by analysts of the BCE describes bitcoin as a “harmful” asset for society.
Ulrich Bindseil and Jürgen Schaaf, the authors of the paper titled “The Distributional Consequences of Bitcoin,” argue that although there is an optimistic future in the price of Bitcoin, its price rise could lead to an “impoverishment of the rest of society”, putting social cohesion, economic stability and, ultimately, the foundations of democracy at risk.
After the publication of the ECB document, the response from the digital currency community was immediate. So, a group of Bitcoin policy specialists, including Dennis Porter, criticized the ECB’s analysis, warning of “fundamental flaws” in the methodology used. According to these specialists, both personal and institutional biases compromise the objectivity of the reportweakening its credibility as a serious analysis of the usefulness and future of Bitcoin.
The situation is further complicated by the recent stance of the Minneapolis Federal Reserve, which has suggested a “legal ban” on Bitcoin. In a working paper, Amol Amol and Erzo Luttmer They describe it as “a useless piece of paper.” and they underline the Cryptocurrency‘s lack of intrinsic value in a broader context.
These attacks have coincided with other less favorable news for Bitcoin, such as the bill signed by Italian President Sergio Mattarella, which contemplates a 42% increase in the tax on capital gains obtained through cryptocurrencies. If approved, this would be the highest tax of its kind globally, which could discourage investors and put even more pressure on the cryptocurrency market.
Adding to this tumult are the statements of Michael Saylor, president of MicroStrategy and considered an icon by many in the crypto community. His recent comments, in which questions Bitcoin’s self-custody by comparing it to the paranoia of cryptoanarchistsgenerated controversy among his followers. Despite his prominent position, his statements have drawn criticism, especially among those who consider autonomy in the ownership of digital assets to be fundamental.
The combination of these factors suggests that Bitcoin not only faces significant regulatory challenges, but is also under intense scrutiny from the institutions that have dominated the financial landscape for decades.
For all this, it is reasonable for the community to wonder if Bitcoin is really under attack, or are these criticisms simply a reflection of the fear of traditional systems at the rise of a new financial era?
In any case, while we look for the answers to the previous question, we recommend that if you missed some of the most relevant news of the week, you detail our multimedia information menu that we leave you below.
Below, we condense all the news events of the last week with
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