Bermuda Post

Thursday, Mar 23, 2023

Why ECB President Christine Lagarde’s Latest Stance On Bitcoin Is A Good Thing

Why ECB President Christine Lagarde’s Latest Stance On Bitcoin Is A Good Thing

ECB President Christine Lagarde’s recent remarks that bitcoin is not a currency show that central banks fear losing power.

European Central Bank (ECB) President Christine Lagarde was interviewed on Bloomberg TV on September 13, which aired yesterday, September 15. Among the topics discussed, which included monetary policy, debt, and gross domestic product (GDP) of countries in the European Union (EU), Lagarde also shared her view on Bitcoin and "cryptocurrencies."

"Cryptos are not currencies. Full stop," Lagarde emphatically said in the video. "Cryptos are highly speculative assets that claim their fame as currency, possibly, but they're not. They are not."

More than just bashing out at "cryptos," Lagarde shows a deep need to suffocate something that threatens her job and its agenda. Putting "cryptos" aside, which are indeed not currencies, there is Bitcoin that is not only a currency but has the potential to turn the ECB and other organizations that have the monopoly on money creation worldwide wholly obsolete. But before discussing Lagarde's agenda as the head of the ECB, the meaning of "currency" needs to be determined.

What Is A Currency?
Merriam Webster's definition of currency categorizes it as "something that is in circulation as a medium of exchange." On the other hand, the noun phrase medium of exchange is defined as "something commonly accepted in exchange for goods and services."

Currency is then something used for someone in exchange for some other product or service. But this medium of exchange role of money is only one of the many characteristics of a good monetary medium. Money also serves as a store of value and a unit of account.

Does this mean Lagarde doesn't understand what a currency is? Unlikely. As the head of one of the leading central banks globally, it is fair to expect her to know what a currency precisely is. The catch, however, is that it is in her best interest to promote her institution's and her fellow central banks' currencies at the expense of others. If Bitcoin were irrelevant and posed no threat to central banks, the ECB President would simply not be talking about it.

Mainstream media will undoubtedly share Lagarde's remarks, and the general public might even see them as the truth. Well, let it be that way. In the end, it is free press for Bitcoin. People historically selected which monetary goods to use based on the benefits they brought to those utilizing them, but in the past couple hundred years, central banks have dictated what ought to be adopted by determining the mediums with which citizens can pay their taxes — until Bitcoin came along.

Bitcoin Is A Currency
Bitcoin, born just twelve years ago, is long past being magic internet money. The peer-to-peer digital monetary network idealized and invented by Satoshi Nakamoto has grown over the "collectible" status to start being recognized as a store of value. Indeed, high-profile investors in developed economies are stating how superior it is to gold — the best store of value for centuries.

The meaning lies in the historical path monetary goods usually take from inception to becoming accepted and used worldwide. New money historically starts as a collectible item, something a tiny percentage of the population sees value in and purchases for different reasons. As its value increases over time and the money perdures, more people notice, increasing adoption and enabling it to be seen as a store of value. Then, the money is mainly hoarded as more and more people acknowledge its demonstrated ability to increase purchasing power compared to other well-established money in that society. This stage is likely where Bitcoin is currently at.

Investors, companies, and people around the world are waking up to Bitcoin's value proposition. As adoption increases, the peer-to-peer digital cash will keep progressing in its monetary path to become a widely accepted medium of exchange. Lastly, with sufficient adoption, bitcoin can get recognized as a unit of account.

National currencies are the only kind of currency being used as units of account, each in its own country, due to political mandates and lack of legal options. However, in the medium of exchange side, different goods can often be used as the transacting parties see fit based on their own needs.

This is already playing out in many countries in the world. Kenya, Nigeria, and other African countries are becoming hotbeds for Bitcoin usage as a store of value and a medium of exchange as citizens face currency debasement, monetary colonialism, and scarce access to the banking system. Similarly, in Central America, El Salvador recently adopted bitcoin as a legal tender after the Bitcoin law was enacted last week. Where the majority of the population doesn't have a bank account, real change is happening with Bitcoin.

Central Banks Fear Bitcoin
Lagarde's comments on Bitcoin and "cryptos" bring to light the fear of those who currently hold the monopoly of money creation. Their actions of moving towards central bank digital currencies (CBDC) further showcase an attempt to tell the public, "hey, we can be digital too!" But the people won't be fooled.

Satoshi Nakamoto created parallel money that doesn't require permission from a central authority to be used. Bitcoin allows people of any background, nationality, religion, and race to access sound money.

Beyond empowering those marginalized by the permissioned monetary system pushed forward by the ECB, the Federal Reserve, and the International Monetary Fund, Bitcoin also provides everyone with an opportunity to be their own masters — something a digital euro or digital dollar will never be able to accomplish.

Bitcoin was created as a direct response to the bailouts given to the banks that caused the subprime crisis in 2008. Big corporations can afford to be reckless because there's always a friendly central bank to rescue them and pardon their debt while the average citizen pays the price.

But apparently, only now have those central banks noticed the reason why Satoshi Nakamoto and the cypherpunks before him brought Bitcoin to the world, and they can't help but fear the end of a centuries-long monopoly. They aren't at ease with the idea of seeing the end of a colossal power that empowers banks, corporations, and influential individuals at the expense of regular citizens who work hard to pay the very taxes that sustain such a system. But the people say no more; because now, they have Bitcoin.


Related Articles

Bermuda Post
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
Nashville police officer, and a female driver shooting one another
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
'No relation to the American SVB': India's SVC Bank acts to calm depositors amid brand name confusion.
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Don Lemon, a CNN anchor, has provided a list of five areas that he believes the black community needs to address.
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
Givenchy Store in New York Robbed of $50,000 in Merchandise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
U.S. Jet Shoots Down Flying Object Over Canada
Being a Tiktoker might be expensive…