• Thu, 21 Nov 2019, 09:36 PM
  • All times are UTC
  • Edition:
    International
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) $7,630.66 (-5.05%)
  • Ethereum (ETH) $160.17 (-8.93%)
  • XRP (XRP) $0.243000 (-3.19%)
  • Bitcoin Cash (BCH) $224.50 (-8.06%)
  • Litecoin (LTC) $50.86 (-8.23%)
  • Bitcoin (BTC) $7,630.66 (-5.05%)
Nov 21, 2019 (Thursday)
14:01
Binance.US teams up with crypto brokerage Tagomi to offer institutional liquidity
12:29
Chinese authorities move forward with plans to introduce blockchain standardization
11:54
Crypto Technicals: XRP/USD grinds lower capped below 5-DMA, bearish bias intact
10:15
Malta-based Binance acquires Indian crypto exchange WazirX
09:30
Crypto Technicals: ETH/USD drops below cloud, hits new 4-week lows, bias bearish
09:11
TradeStation Group's new crypto brokerage platform launches for approved countries, U.S. states
08:52
Libra will be classified once it goes live; PayPal explains why it backed out of the Association
07:56
Facebook’s Libra marches ahead, logs 34 projects since testnet launch in September
06:47
Crypto exchange Shapeshift introduces commission-free trading
06:36
Crypto Technicals: LTC/USD confirms 'Death Cross' on 4-hour charts, scope for downside resumption
06:04
Bitcoin.com to launch $200M bitcoin cash investment fund in 2020
05:34
CryptoCompare drops Binance out of its Exchange Benchmark; Hacking incident cited behind the decision
04:50
Crypto Technicals: BTC/USD extends consolidation above 55W EMA (7951), bias bearish
04:50
1.4M GateHub user information compromised five months after it suffered a hacking incident
04:46
$400M of Ripple’s XRP token linked to illicit activity: Elliptic
03:01
Federal Reserve chairman doesn’t see benefits of CBDC for U.S. consumers
Nov 20, 2019 (Wednesday)
12:47
MAS launches consultation on allowing crypto derivatives trading on approved exchanges
11:49
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
11:49
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
11:22
Chinese firms HDFH, ZVCA and Yillion Bank launch $1B blockchain investment fund
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft