Official announcements from the European Central Bank or EU regulatory bodies

ECB Paper Warns of Bitcoin Ban, Impact on Wealth Distribution by Early Adopters

Oct 19, 2024, 12:36 PM

The European Central Bank (ECB) has published a new paper titled 'The distributional consequences of Bitcoin,' authored by economists Ulrich Bindseil and Jürgen Schaaf. The paper argues that the continued appreciation in Bitcoin prices may disproportionately favor early adopters at the expense of latecomers and non-holders, impacting wealth distribution. This has sparked concerns among analysts, such as Tuur Demeester, who warn that the ECB might use this argument to justify harsh regulations or even a ban on Bitcoin. The report claims early Bitcoin adopters 'steal economic value' from latecomers and has been met with criticism from the Bitcoin community, who argue that the ECB's stance stems from a lack of understanding and missed opportunities to engage with the cryptocurrency.