In a document listing the technologies likely to become the “Holy Grail” of cross-border payments, the European Central Bank (ECB) looks at Bitcoin (BTC). However, the latter is getting negative reviews, while stablecoins and central bank digital currencies (MNBC) are getting more positive reviews.
The ECB gives its opinion on Bitcoin again
The European Central Bank (ECB) published the work report on the search for the “holy grail of cross-border payments”, in which it paints an unflattering picture of Bitcoin (BTC). In this 59-page document attributed to Ulrich Bindseil and George Pantelopoulos, several solutions are explored and of course, elements relating to our ecosystem are present there.
An international payment system that can claim the qualification of “Holy Grail” must meet four conditions:
- Be immediate;
- Be cheap;
- Have a universal scope;
- Be a secure means of payment, such as central bank money.
As far as Bitcoin is concerned, this option is processed in fifth part and start with this introduction:
” The [Conseil de stabilité financière] do not even consider non-backed crypto-assets such as Bitcoin as a means of cross-border payment. »
The irony of the situation is that the term “bitcoin” is nevertheless mentioned 199 times in the documentwhich contrasts with the low importance that seems to be given to it.
The report half-acknowledges that the Lighting Network solves the problem of speed and low transaction costs, but it also highlights many black points. Once again, the proof-of-work (PoW) consensus is questioned for being qualified as duty and useless.
Note also the eternal crime argumentyet repeatedly contradicted:
“Much of its perceived appeal for cross-border payments stems from the fact that it escaped (so far) to equal regulatory treatment in terms of compliance […]. This has led to the widespread use of Bitcoin for criminal purposes. »
👉 To go further – Discover the arguments of Alexander Stachchenko to defend Bitcoin (BTC)
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The issue of stablecoins and MNBCs
Beyond Bitcoin, the ECB is also focusing on stablecoins as well as central bank digital currencies (MNBC).
As for stablecoins, the survey highlights the fact that they have interesting qualities for possible use in international settlements. For reasons of financial stability, however, the emphasis is on collateralized stablecoins.
On the other hand, the authors of the report highlight the sovereignty issues produced by this technology. In this case, a digital asset would then replace the sovereign function of a State, which is monetary issuance.
Regarding the MNBC, the costly works a system providing a Forex overlay. This means that each country could use its own design, but that design would be directly converted in the destination currency. That said, the weak development of MNBC at the moment, constitutes for the moment a brake on the development of this solution.
Once again, we see that blockchain-related technologies are of interest, but related assets, such as Bitcoin, are divisive. Often reproached, the latter would nevertheless be 56 times less energy consuming than the traditional financial system, according to a study by Michel Khazzaka. In addition, a transaction with the Lighting Network would be 345,000 times faster than a traditional transaction and 14 times faster than instant payment technologies.
👉 Also in the news – MicroStrategy: Michael Saylor wants to focus on Bitcoin (BTC) and step down as CEO
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Source: European Central Bank, Michel Khazzaka
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