Amid the ongoing debate over bitcoin's legitimacy, Cardano founder Charles Hoskinson and the X community are taking a strong stance against the European Central Bank's (ECB) skepticism towards the leading cryptocurrency.
X Community Notes: A Blow To ECB's bitcoin Criticism
In a recent outlook clash, the ECB expressed concerns that bitcoin is too expensive and susceptible to illicit transactions, despite positive developments such as the approval of spot ETFs by the US Securities and Exchange Commission. United States (SEC).
Hoskinson has lent his support to Community X's strong defense against the ECB's reservations. Applauding the community's response, she commented: “Community banknotes have just murdered the ECB,” referring to the data provided in their counteroffensive.
The community notes have just murdered the ECB https://t.co/96lpajQpUd
—Charles Hoskinson (@IOHK_Charles) February 23, 2024
With the X Community Notes feature, users can provide context, for example by verifying a post, photo, 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 defense of the
Furthermore, the proportion of illicit bitcoin transactions was reported to be significantly lower at 25%. The community also noted that illicit transactions involving the euro (EUR) accounted for only 1% of EU GDP in 2010.
btc market cap currently at $1.002 trillion. Chart: TradingView.com
This hostility comes at a crucial time, with the ECB remaining firm in its skepticism, citing the Chainalysis 2024 report that emphasized the alleged prevalence of bitcoin in money laundering.
The ECB 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 ECB Shock: Hoskinson Backs X
Despite bitcoin's legal tender status in El Salvador and government support, the ECB remains unconvinced of its adoption as a conventional means of payment. The report noted that beyond criminal activities on the dark web, bitcoin transactions for legitimate purposes are rare. The SEC's recent approval of bitcoin ETFs was dismissed as something akin to the “naked emperor's new clothes.”
Hoskinson's support for community X advocacy draws attention to the broader discourse around the future and legitimacy of digital currencies. The clash between the ECB and the X community underscores the rapidly evolving cryptocurrency landscape and the challenges traditional financial institutions face in understanding and regulating this emerging asset class.
Featured image from Adobe Stock, TradingView chart
