The European Central Bank (ECB) released a financial review report on Wednesday discussing potential financial instability that could spillover from the US markets. The same report also discussed the volatility in the crypto market but insisted Bitcoin has eclipsed the Bubble phase and is no longer behaving like previous financial bubbles such as ‘Tulip Mania’ and the South Sea Bubble. An excerpt from the financial report read,
“The surge in Bitcoin prices has eclipsed previous financial bubbles like the ‘tulip mania’ and the South Sea Bubble in the 1600s and 1700s.”
The Financial Stability Review report however further claimed that despite the growing popularity of Bitcoin and other digital assets, they are not a widely used form of payment, and banks around the globe have less exposure to these assets, thus they pose no significant threat to the financial stability.
Bitcoin this bull season has managed to win back many former critics with its price rise as well as aggressive adoption by retail and institutions alike. However, central banks around the globe are still maintaining a passive stance towards these digital assets while hinting at increasing regulations, which is understandable given their primary focus at present seems to be toward CBDC.
Germany’s Central Bank Payment Director Says He Understands Why People Would Like to Run a Full Bitcoin Node
This bull season has propelled Bitcoin and altcoins to mainstream adoption and while central banks can’t allow them to be used as legal tender, they do understand its potential as an inflation hedge and store of value. Recently, the payment director at German Central Bank said he understands why people would like to run a full Bitcoin node.
Bitcoin nodes contain the entire payment history of the Bitcoin network and make the network truly decentralized. The more number of Bitcoin nodes there are in the world, the more decentralized is the Bitcoin network.
The director of payments at Germany’s Central Bank, says he understands why users would want to run a #Bitcoin full node.
— Documenting Bitcoin (@DocumentingBTC) May 18, 2021
These comments from the top banking systems of the world indicate that Central Banks have started to see Bitcoin beyond a bubble.
The post ECB Report Says Bitcoin’s Progress has Eclipsed Bubble Like Behaviour appeared first on Coingape.
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