Isabel Schnabel, a member of the Board of Directors of the European Central Bank (ECB), attacked Bitcoin, claiming that the encrypted asset “does not have the basic properties of currency.” She also described Bitcoin as “without any identifiable basic value.” Speculative assets, and prices may fluctuate sharply.” Schnabel also speculated that “trust in cryptocurrencies may disappear quickly”, which in turn will lead to “financial market chaos.”
In a speech in a recent interview, Schnabel also revealed how she and her colleagues at the European Central Bank believed that “it is wrong to describe Bitcoin as a currency.” Nevertheless, Schnabel was reminded of the billionaire A. When Elon Musk’s views on Bitcoin, a member of the European Central Bank’s board of directors replied: “He has the freedom to do this.”
At the same time, Schnabel used the interview opportunity to reiterate the determination of the European Central Bank to create its own digital currency. However, she said that “a lot of preparatory work is needed to make the project set up correctly.” Schnabel also tried to prove that consumers will be more willing to accept digital currencies issued by the European Central Bank rather than digital currencies issued by private entities. . she says:
No one can provide the same level of security and data protection as ECB. People think this topic is important: as consumers, who do we want to disclose our data to? They are certainly more likely to trust the European Central Bank than Facebook or other private operators.
Unsurprisingly, Schnabel’s comments drew a swift response from some Bitcoin and cryptocurrency supporters on Twitter. For example, Twitter user Plan B responded to Schnabel’s remarks that ECB is a trusted institution, saying:
“People in Zimbabwe, Venezuela, Lebanon, Turkey beg to be different (after what the central bank did with their money).”
Human rights and data protection
Alex Gladstein, the chief strategy officer of the Human Rights Foundation, also raised questions to members of the European Central Bank’s board of directors. he asks:
Isabel, how much research have you done on the human rights impact of Bitcoin? I have many examples from all over the world. These people and groups are in an environment of high inflation and authoritarianism, and they benefit from using this new fund.
At the same time, other users also criticized Schnabel’s claim that “no other institution can provide the same level of security and data protection as ECB.” For example, user Ryan Cwynar reminded Schnabel: “In fact, any encrypted currency chain is better than yours. Any system that an organization can design provides greater security.”
Nevertheless, some users like Micheal Reilly still believe that there is a place for the privately issued digital currency and the currency that the European Central Bank intends to create. He says:
“In any country, central bank policy is the least problematic. Institutional failure or any institutional problem will and may affect everything in a country. CB is not a problem. I own Bitcoin and believe it has useful examples. The digital euro is also a good idea.”
What is your reaction to Schnabel’s remarks about Bitcoin? You can share your views in the comments section below.
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