European Central Bank (ECB) bankers are calling for action against the world's largest crypto currency. They say Bitcoin adoption would have dystopian consequences for society.

It's a recurring theme at the ECB: Jürgen Schaaf, Senior Manager at the ECB, called on X (formerly Twitter) to "eliminate" Bitcoin. Together with Ulrich Bindseil, Schaaf published a paper criticizing Bitcoin's inequality in wealth distribution. This is not the first time these two ECB staffers have spoken negatively about Bitcoin; they have also written anti-Bitcoin articles in the past.

11/ In democracies, Bitcoin could influence elections. Crypto-friendly candidates may gain support from early adopters, swaying outcomes in favour of policies that harm non-holders.
— Jürgen Schaaf (@schaaf_jurgen) October 20, 2024

They describe Bitcoin as a "speculative bubble" from which only early investors benefit. Schaaf compares it to "fill a large barrel by sprinkling water from many buckets - the latecomers must give up. Which is to the advantage of the early birds." This wealth inequality, he said, could destabilize society, both economically and politically.

"Crypto-friendly candidates can win the support of early adopters, promoting policies that harm Bitcoin non-owners." Next, Schaaf comes out with a clear call: "Non-Bitcoin owners need to realize that Bitcoin's rise is at the expense of their prosperity. There are compelling reasons to support policies that limit or even eliminate Bitcoin's growth."

Christine Lagarde, the president of the ECB, is also not a fan of Bitcoin and other crypto currencies. According to her, they are purely speculative, pose a threat to the West and work in Putin's hands. However, many of her arguments do not hold up to a fact check.

The ECB has been working for some time on the development of a digital euro, a so-called CBDC (Central Bank Digital Currency). A pilot project is to be launched by 2027, but so far there has been little public support. Critics warn that CBDCs could become dangerous instruments of financial control. A dystopian example is the digital yuan in China, where the government is introducing a new, powerful control and surveillance mechanism through the CBDC. Anonymous payments, as with cash, are a thing of the past there, because every digital transaction can theoretically be tracked by the government.

However, the ECB and other proponents of the digital euro promise that this is not a risk, as they want to take extreme care of users' privacy.