Jürgen Schaaf, ECB's Senior Adviser on Market Infrastructure and Payments, said that Bitcoin, the top cryptocurrency by market capitalization, excluded.
“There are compelling reasons to advocate for policies that reduce or even eliminate Bitcoin's growth,” he said in a recent social media post.
He pointed out that Bitcoin's rise has largely come at the expense of latecomers and “non-holders.” “It's like draining a bunch of buckets and filling a big barrel. Latecomers have to give up in favor of early risers,” Schaaf added.
Schaaf said pro-Bitcoin politicians could further skew the distribution of wealth. This can have consequences that threaten social stability, as late entrants become increasingly dissatisfied due to reduced purchasing power.
The wealth and consumption of early adopters of cryptocurrencies will continue to increase. Meanwhile, Scharf said other people will be even poorer, regardless of whether they actually own major cryptocurrencies.
The increase in Bitcoin consumption recorded by early adopters will come at the expense of others.
If the price of a major cryptocurrency continues to rise, those who miss out on it will experience a decrease in consumption. According to Schaaf, this means “actual poverty.”
as U.Today reportedEuropean Central Bank (ECB) President Christine Lagarde described cryptocurrencies as “worthless” in 2022.
