The European Central Bank (ECB), the central bank for the Eurozone, is unwittingly boosting the case for cryptocurrency adoption, the community believes – and that’s exactly the last thing they want to be doing. This comes after they said they could always create money, and the crypto community was quick to reply with accusations of scamming.
The bank had started a Twitter thread under the hashtag #AskECB, and Twitter user @Gianluca844 took the chance to ask, “Where did you get the money for the [quantitative easing]?” The bank replied:
Quantitative easing (QE), also known as large-scale asset purchases, is an expansionary monetary policy whereby a central bank, which is the ECB in this case, buys predetermined amounts of government bonds or other financial assets in order to stimulate the economy and increase liquidity.
This operation started in 2015 and was finished by the end of 2018, during which the ECB has spent EUR 2.6 trillion (USD 3 trillion), buying up mostly government but also corporate debt, asset-backed securities and covered bonds, at a pace of EUR 1.3 million a minute, according to Reuters. That equates to roughly 7,600 euros (BTC 2.23) for every person in the currency bloc.
The cryptocurrency community took issue with the reply, with many tweeting gifs of the Bitconnect Ponzi scheme, which has since its downfall become synonymous with shady doings.
“Central banks are marketing bitcoin better than we can,” replied Twitter user @zackvoell, while user @wiz has more to say: “The world is now opening their eyes to your scam of robbing people of their purchasing power by endlessly printing bank notes on worthless paper. The global economy will implement a new Bitcoin standard to opt-out of your scam and prevent further theft by central banks.”