European Central Bank Declares War On Bitcoin

The European Central Bank has accused Bitcoin of only harming the public. (Photo; Doc. Forkast)

JAKARTA - The European Central Bank (European Central Bank/ECB) this time criticized the largest crypto asset by market capitalization, Bitcoin (BTC). In the latest ECB report entitled "Districtional Concequences of Bitcoin" or Consequences of Distribution from Bitcoin, the European Central Bank accuses Bitcoin of only harming the wider community.

A number of analysts view this report as a "war declaration" against Bitcoin, as reported by Finbold. The sharp criticism raised by the ECB highlights the instability of the economic value of this crypto asset and its negative impact on the wider community.

The report, written by economist ECB, Ulrich Bindseil and J\"urgen Schaaf, said that Bitcoin is a speculative asset whose value is not supported by a real economic foundation.

In a scenario where the price of Bitcoin continues to rise, the ECB warns that profits will only be enjoyed by early Bitcoin holders, while the majority of the people, including new investors, will suffer losses. The report confirms that Bitcoin does not increase economic productivity, but instead creates unfair wealth inequality and redistribution.

In Europe, efforts to draft regulations to suppress Bitcoin and other crypto assets continue to be increased. For example, Italy has raised the capital gain tax for Bitcoin from 26% to 42%. This move is considered an attempt to suppress Bitcoin price speculation. At the international level, politicians such as Kamala Harris, a candidate for president of the United States, have also called for an increase in taxes on crypto assets to control market volatility.

In addition, in the report, the ECB highlighted the potential detrimental social impact if Bitcoin continues to grow uncontrollably. Wealth redistribution or wealth redistribution that occurs due to the Bitcoin price spike is predicted to harm the wider community who do not have early access to this cryptocurrency. In fact, the ECB hints that the impact of this speculation could exacerbate the global economic gap.

According to Tuur Demeester, a leading crypto analyst, the report is a strong signal that European authorities could implement more aggressive policies towards Bitcoin. The ECB has publicly discussed the possibility of taking steps to suppress the price of Bitcoin through market manipulation regulated by law. Demeester warns that this kind of approach could exacerbate the situation for investors and Bitcoin users around the world.