If you have followed the ECB question and answer hashtag – #AskECB on Twitter, you would have noticed the usual ECB’s lukewarm response anytime questions relating to cryptocurrency was asked.
Unlike many other instances where the cryptocurrency community was used to their antics, the recent comment by an ECB’s executive, Benoit Coeure calling out U.K.’s leading financial regulators to buckle up with regulations ahead of the Facebook’s Backed Libra launch in 2020.
Something interesting to the cryptocurrency community was one of his statement where he wrote that “development of digital currencies is exposing deficiencies in existing regulation and the failure of the banking system to adopt new technology.”
The statement above resonated with the cryptocurrency community who were keen to know the next move by the ECB. Cryptocurrency experts were already seeing the possibility of ECB changing its narrative and possibly start exploring ways of diversifying their reserve by possibly adding Bitcoin to it in the nearest future.
However, the community’s expectations were met with disappointment as the newly assumed ECB’s Chief Economist, Philip Lane responded in not just a disappointing manner but such that has thrown a new cause for debate of both who determines what a currency is, and what is a currency.
According to Philip Lane, “Bitcoin is not a currency, it rather is an asset, and it is very volatile.” Responding to his comment, one of the top voted comments on Twitter reads that, “currency is what people choose (and agree) to use. It is not dictated [by organizations like the FED and ECB].”
While the argument continues, another commenter argued against ECB’s position that volatility experienced in Bitcoin so far is better than the Euro since it was introduced.
Since it seems the top voted comment resonates with the ECB’s audience, it would be to the interest of the people if ECB takes a chance on Bitcoin. If they aren’t adding it to their reserve, they should at least explore ways to innovate on the technology powering Bitcoin if they will remain relevant in the future.
Since the interest in Bitcoin is almost getting wide acceptance as there seems to be a consortium of industry giants working on innovating with the blockchain technology to provide a new kind of financial service.
Let’s hope to see if the ECB will take a look at the comments or continue with its position that Bitcoin is not a currency.