China’s Central Bank: ‘Bitcoin Has No Value’. Can Central Bankers Kill Bitcoin?
On August 13, Russia’s Central Bank called it a «technological financial pyramid scheme.» First Deputy Governor of the Bank of Russia, Sergey Shvetsov, likened buying Bitcoin to «entering a minefield» and said the local stock exchange should not list any companies that trade in Bitcoin . A month earlier, on July 18, the Bank of England’s FinTech Director, Tom Mutton, said a digital fiat would be way better than stupid Bitcoin. «Bitcoin, given its performance shortcomings and energy inefficiency, is in no way a relevant comparison for the sort of technology we might use in a central bank digital currency,» Coindesk reported him saying. On July 16, Powell said during testimony to Congress that the Fed’s ongoing research into a digital dollar would probably just render Bitcoin obsolete.
«You wouldn’t need stablecoins, you wouldn’t need cryptocurrenicies, if you had a digital dollar,» he said. Two months earlier, Bank of Japan governor Haruhiko Kuroda said Bitcoin was basically a casino chip used for highly speculative gambling, er um, investing. And no one settles purchases in Bitcoin. «No one really uses Bitcoin as a means of settlement,» he told Bloomberg on May 28.
I have been warning about Bitcoin being gobbled up by a globally coordinated central bank action to take it out of the market. Perhaps this is why John Paulson, a hedge fund manager who’s claim to fame was calling the housing bubble of 2008, thinks that Bitcoin have no value either. In the long term, however, the biggest risk to Bitcoin, in particular, is the Fed, the PBoC, the Bank of Japan, etcetera. They all clearly have no use for Bitcoin.
Nor do they want any competition for their digital fiat currencies.
«, want their population to use their national currency,» says Jason Blick, CEO of EQIBank and Chairman of EQIFI. «, given the dominance of the dollar». Some people are even a bit bullish if a digital dollar, or the digital renminbi gets a true rollout. It’s already been piloted in parts of China.
«If the Federal reserve launches a digital dollar, which is compatible on chain, then it’s going to be a positive sign for BTC, Ethereum and other crypto currencies,» thinks Sainath Gupta, CEO of Knit. They are in the multi-blockchain wrapping, bridging and liquid staking space for the decentralized finance niche of crypto. «I think it will then be an easier and more trustful bridge for institutional investors, retail investors will come in fear of missing out, increasing crypto prices all around,» he says. Centralized digital currencies do not really pose a direct threat to Bitcoin, many in the blockchain and crypto industry believe.
Unlike Bitcoins, a digital renminbi, or digital dollar, is issued by a central authority. Bitcoin’s decentralized structure, volatility and limited supply has most countries classify it as a commodity investment. Therefore, demand for Bitcoin does not correlate with demand for any government-issued digital currencies. «Bitcoin is really at the mercy of banking regulations especially Anti-Money Laundry laws,» says Adnan Haider, CEO of Regal Holdings LLC.
Most central banks, when their executives are not trashing Bitcoin, are really still working out how to set regulations with the Securities and Exchange Commission, for instance. Crypto investors are «waiting to see what regulators will say and if whether they will be allowed to exist. » « No one expected the tsunami of legal, political and social media action from retail cryptocurrency investors, outraged by the betrayal from an agency claiming to protect their interests.» The meltdown of the SEC’s credibility with this $2 trillion global investor community exposes a costly SEC miscalculation. Such is the regulatory woes of crypto.
Their digital RMB is designed to not only vanquish Bitcoin but is the start of a long-term journey to remove the dollar’s dominance as global trade currency, especially in Asia. Your Bitcoin is still safe.
Source: Kenneth Rapoza | Forbes