Jürgen Schaaf, advisor to the Senior Management of the Market Infrastructure and payments business area of the ECB, has suggested that Bitcoin, the leading cryptocurrency by market cap, should be eliminated.
“There are compelling reasons to advocate for policies that curb Bitcoin’s growth or even eliminate it,” he said in a recent social media post.
He has noted that Bitcoin’s gains mainly come at the expense of latecomers or “non-holders.” “It’s like filling a big barrel by draining water from many buckets— the latecomers have to give up for the benefit of the early birds,” Schaaf added.
According to Schaaf, pro-Bitcoin politicians could end up skewing wealth distribution further. This could end up threatening sociatal stability since latecomers will feel increasingly frustrated due to the erosion of their purchasing power.
The wealth and consumption of the cryptocurrency’s early adopters will continue to rise. Meanwhile, others will get poorer regardless of whether or not they actually own the flagship cryptocurrency, according to Schaaf.
The Bitcoin-driven increase in consumption recorded by early adopters will be at the expense of other people.
If the price of the leading cryptocurrency continues to increase, those who missed out on the cryptocurrency will experience diminished consumption. This would mean “actual impoverishment,” according to Schaaf.
As reported by U.Today, European Central Bank (ECB) President Christine Lagarde described crypto as “worthless” back in 2022.