Amidst the ongoing debate surrounding the legitimacy of Bitcoin, Cardano founder Charles Hoskinson and the X community are taking a firm stand against the European Central Bank’s (ECB) skepticism towards the leading cryptocurrency.
X’s Community Notes: A Blow To ECB’s Bitcoin Critique
In a recent clash of perspectives, the ECB expressed concerns about Bitcoin being too costly and susceptible to illicit transactions, despite positive developments such as the approval of spot ETFs by the US Securities and Exchange Commission (SEC).
Hoskinson has lent his support to the X community’s robust defense against the ECB’s reservations. Applauding the community’s response, he remarked, “Community notes just murdered the ECB,” referring to data provided in their counteroffensive.
Community Notes just murdered the ECB https://t.co/96lpajQpUd
— Charles Hoskinson (@IOHK_Charles) February 23, 2024
With X’s Community Notes function, users can provide context by, for example, fact-checking a post, photograph, or video. Community Notes invites X users to collectively add context to possibly incorrect posts in an effort to make the world a more informed place.
The X community’s defense, backed by a Chainalysis report, challenges the ECB’s claims by highlighting that only 0.34% of cryptocurrency transactions in 2023 were associated with criminal activity.
Furthermore, Bitcoin’s share of illicit transactions was reported to be significantly lower at 25%. The community also pointed out that illicit transactions involving the Euro (EUR) made up just 1% of the EU’s GDP in 2010.
BTC market cap currently at $1.002 trillion. Chart: TradingView.com
This hostility comes at a crucial juncture, with the ECB standing firm on its skepticism, citing the Chainalysis 2024 report that emphasized Bitcoin’s alleged prevalence in money laundering.
The ECB’s report questioned Bitcoin’s role as a global decentralized digital currency, highlighting vulnerabilities to fraud and manipulation, along with concerns about high costs, slow transaction speeds, and limited utility for legitimate transfers.
Bitcoin’s ECB Clash: Hoskinson Backs X
Despite Bitcoin’s legal tender status in El Salvador and government backing, the ECB remains unconvinced of its adoption as a mainstream means of payment. The report noted that, beyond criminal activities on the dark web, Bitcoin transactions for legitimate purposes are rare. The recent approval of Bitcoin ETFs by the SEC was dismissed as akin to “The Naked Emperor’s New Clothes.”
Hoskinson’s support for the X community’s defense brings attention to the broader discourse on the future and legitimacy of digital currencies. The clash between the ECB and the X community underscores the rapid evolution of the cryptocurrency landscape and the challenges faced by traditional financial institutions in understanding and regulating this emerging asset class.
Featured image from Adobe Stock, chart from TradingView