Copy link
Increase text size
Decrease text size
Link copied

Bitcoin is an extremely clever idea, but not every clever idea is a good idea, says ECB’s Benoît Cœuré

Photo: ECB (Twitter)

Fri, 16 Nov 2018, 10:33 am UTC

Bitcoin is the evil spawn of the financial crisis, a member of the European Central Bank’s (ECB) executive board said recently.

Speaking at the Economics of Payments IX conference on November 15, Benoît Cœuré, focused on the new frontier of payments and market infrastructure 10 years after the failure of Lehman Brothers.

In his speech, Cœuré clearly expresses his wariness on cryptocurrencies – calling bitcoin an “extremely clever idea”, but adding “not every clever idea is a good idea.”

“Few remember that Satoshi embedded the genesis block with a Times headline from January 2009 about UK banks’ bailout. In more ways than one, Bitcoin is the evil spawn of the financial crisis,” he said.

“The opportunities of the blockchain are many, but the problems of Bitcoin are also plentiful. I believe that Agustín Carstens summed its manifold problems up well when he said that Bitcoin is “a combination of a bubble, a Ponzi scheme and an environmental disaster.”

With regard to distributed ledger technology (DLT), Cœuré underscored the need to study and research more about the technology for a better understanding.

“Last year we published an analytical framework for looking at DLT. That said, there is still much that we do not understand, and things are moving rapidly,” he added.

Further, Cœuré noted the ongoing efforts at other central banks to use DLT to issue their own digital currencies – central bank digital currencies (CBDCs). To that end, he cited a recent CPMI survey of some 80 central banks on their work in this field.

“A clear majority, 69%, is currently, or will soon be, conducting work related to CBDCs. The remaining central banks are typically either small in size, face more pressing challenges, or indicated that they rely on work by regional research programmes or international organisations, such as the BIS or the IMF,” he said.

“And of those that are conducting work – the majority, 57%, investigates two broad forms of possible application: a wholesale payment application restricted to large-value and high-priority transactions, such as interbank transfers, or a widely available, consumer-facing payment instrument targeted at retail transactions – what we call general purpose CDBC.”

However, Cœuré stressed that there is broad agreement that a CBDC is unlikely to be issued within the next decade, even among the four central banks that have indicated that they have reached the stage of developing a pilot project.

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $9,666.08 (-0.30%)
  • Ethereum (ETH) $242.50 (-0.17%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $256.10 (-0.32%)
  • Bitcoin SV (BSV) $194.73 (-0.88%)
  • Bitcoin (BTC) $9,666.08 (-0.30%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft