Cardano founder Charles Hoskinson has expressed his support for the X community's strong defense against the European Central Bank's (ECB) ongoing skepticism towards Bitcoin (BTC). The illegal transactions.
Cardano founders and X community defend themselves at the ECB
Citing details shared via the
The community notes highlighted that the Chainalysis report mentioned that only 0.34% of cryptocurrency transaction volume in 2023 was due to criminal activity, while Bitcoin's share of illegal activity was significantly lower at 25%. In addition, the notes highlighted that illegal transactions involving euros (EUR) accounted for 1% of the EU's GDP in 2010, which was equivalent to 100 billion euros.
This defense comes at a crucial time as ECB skepticism continues despite recent positive developments in the US, such as the approval of Bitcoin ETFs by the Securities and Exchange Commission (SEC). The ECB cited the 2024 Chainalysis report and highlighted the prevalence of Bitcoin in money laundering.
Additionally, they highlighted that illegal addresses transferred $23.8 billion worth of cryptocurrencies in 2022, an increase of 68% year-on-year. Additionally, they noted that crypto exchanges were responsible for laundering nearly 50% of these funds despite regulatory compliance.
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What allegations did the ECB make against Bitcoin?
European regulators had expressed disbelief towards Bitcoin despite the country recently allowing ETFs. In its latest report, the ECB reiterated its concerns and highlighted Bitcoin's shortcomings as a digital currency and investment despite ETF approval.
This stance was a blow to enthusiasts who were hoping for a change in perception with the launch of the Spot Bitcoin ETF. The ECB emphasized that Bitcoin has failed to become a global decentralized digital currency and is vulnerable to fraud and manipulation. It also highlighted cryptocurrency's high costs, slow transaction speeds and limited utility for legitimate transfers.
The ECB is unconvinced by the SEC’s recent approval of Bitcoin ETFs, dismissing it as a kind of “The Naked Emperor’s New Clothes.” Although Bitcoin is gaining legal tender status and government support in El Salvador, its acceptance as a mainstream payment method remains limited, the ECB report said.
Regulators also noted that Bitcoin transactions for legitimate purposes outside of criminal activity are rare on the dark web. They added that even efforts to incentivize usage, such as offering free BTC to citizens, have not resulted in widespread adoption.
Also read: Valkyrie expands with launch of Bitcoin Futures ETF BTFX
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