bitcoin deemed unfit for national reserve usage by ECB advisor.
Crypto Critic Jürgen Schaaf Slams Bitcoin 🚀🤫
TL;DR: European Central Bank consultant, Jürgen Schaaf, doesn't think Bitcoin is a solid choice for national reserves. He points to its volatility, lack of real-world value, and susceptibility to manipulation as reasons why it's not great for currency stability.
Let's spill the tea on this crypto critic, shall we? Jürgen Schaaf, an ECB advisor, isn't a fan of the OG cryptocurrency. In an interview with Cointelegraph, he belted out that Bitcoin cannot strengthen currency stability, but rather, fuels speculation and wealth redistribution.
Schaaf believes that valuable reserves such as raw materials or energy resources bring tangible economic benefits, whereas cryptocurrencies do not offer similar advantages. He also shot down the idea of central banks diversifying their reserves with digital assets, arguing it'd be even riskier.
Guess who's not jumping on the Bitcoin bandwagon? Montana, North Dakota, and Wyoming authorities, who shot down local bills aiming to establish Bitcoin reserves a few weeks back. If you remember, VanEck estimated these initiatives could bump up Bitcoin demand by $23.5 billion.
You know what else? Bitcoin's price was hovering around $86,000 in the recent crypto market turmoil, with daily ETF outflows hitting a whopping $1 billion. Woah prime baby! 💸
Now, why would central bankers hesitate to embrace Bitcoin as a reserve? Well, they're probably wary of its volatility, lack of central oversight, and potential systemic risks. Schaaf's specific stance or motivations aren't entirely clear, but his overall sentiment is a thorn in the side of Bitcoin maxis. 😡🎉
Sources:
- "Bitcoin, Fiat and Rock'n'Roll" podcast episode [1] (https://www.youtube.com/watch?v=pGjqcFvUlWQ) where Schaaf discusses the downsides of Bitcoin as a national state reserve.
- Cointelegraph article referenced in the base article [2] (https://cointelegraph.com/news/ecb-advisor-jurgen-schaaf-calls-bitcoin-not-suitable-for-national-state-reserves)
- Bankless Times article on Wyoming declining Bitcoin reserves [3] (https://banklessTimes.com/wyo-nd-montana-reject-local-bills-to-establish-bitcoin-reserves/)
In an interview with Cointelegraph, European Central Bank advisor Jürgen Schaaf expressed his view that Bitcoin is not a suitable option for national reserves due to its volatility, lack of real-world value, and potential for manipulation, arguing that it fuels speculation and wealth redistribution instead of strengthening currency stability. Additionally, Schaaf believes that central banks diversifying their reserves with digital assets like Bitcoin would be even riskier, given the lack of central oversight and potential systemic risks associated with Bitcoin.
