Amid the ongoing debate surrounding Bitcoin’s legitimacy, Cardano founder Charles Hoskinson and the X community have stood firm against the European Central Bank’s (ECB) skeptical stance toward the leading cryptocurrency.

X’s Community Notes: Blow to ECB Bitcoin Criticism

In the latest clash of views, the ECB expressed concerns that Bitcoin is too expensive and vulnerable to illicit trading, despite positive developments such as the U.S. Securities and Exchange Commission (SEC) approving a spot ETF.

Hoskinson supported the X community’s strong defense of the ECB’s reservations. He praised the community’s response and said, “The community notes just murdered the ECB,” referring to the data they provided in their counterattack.

With X's Community Annotations feature, users can provide context by, for example, fact-checking a post, photo, or video. Community Annotations invites X users to work together to add context to potentially incorrect posts, in an effort to make the world a more informed place.

The X community’s defense is supported by a Chainalysis report that challenges the ECB’s claims, highlighting that only 0.34% of cryptocurrency transactions in 2023 were related to criminal activity.

Furthermore, Bitcoin reportedly accounts for a significantly lower proportion of illegal transactions, at just 25%. The industry also noted that illegal transactions involving the Euro (EUR) only accounted for 1% of the EU’s GDP in 2010.

The hostility comes at a critical moment, with the ECB firmly skeptical and citing the Chainalysis 2024 report, which highlights Bitcoin’s alleged prevalence in money laundering.

The ECB report questioned Bitcoin’s role as a global decentralized digital currency, highlighting its vulnerability to fraud and manipulation, as well as concerns about high costs, slow transaction speeds and limited utility for legal transfers.

Bitcoin and the ECB clash: Hoskinson backs X

Despite Bitcoin’s legal tender status in El Salvador and government support, the ECB remains unconvinced that Bitcoin will become a mainstream payment method. The report states that Bitcoin transactions for legitimate purposes are rare, aside from criminal activity on the dark web. The recent approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC) is seen as akin to the “Emperor’s New Clothes.”

Hoskinson’s support for the X community’s defense draws attention to the broader discussion about the future and legitimacy of digital currencies. The conflict between the ECB and the X community highlights the rapid evolution of the cryptocurrency landscape and the challenges that traditional financial institutions face in understanding and regulating this emerging asset class. #比特币 #欧洲央行