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A new paper from European Central Bank (ECB) economists has been described as a “declaration of war” on Bitcoin, sparking concerns of a regulatory crackdown.
The paper argues that Bitcoin’s rising value disproportionately benefits early adopters, raising the possibility of aggressive measures such as tax hikes or even bans.
While the paper, written by ECB economists Ulrich Bindseil and Jürgen Schaaf, is not an official stance, it created a stir on social media.
“This new paper is a true declaration of war,’’ said Tuur Demeester, head of research at Bitcoin research firm Adamant Research. ‘’The ECB claims that early Bitcoin adopters steal economic value from latecomers. I strongly believe authorities will use this luddite argument to enact harsh taxes or bans.’’
1/ This new paper is a true declaration of war: the ECB claims that early #bitcoin adopters steal economic value from latecomers. I strongly believe authorities will use this luddite argument to enact harsh taxes or bans. Check 🧵 for why: pic.twitter.com/qg31YenTSC
— Tuur Demeester (@TuurDemeester) October 19, 2024
This is not the first attack on BTC from the ECB economists. In November 2022, while the crypto market was at the depth of the bear market and BTC was trading at $18,000, they wrote that the asset was in “an artificially induced last gasp before the road to irrelevance.”
Fed Working Paper Favors Tax On Bitcoin
A recent Federal Reserve Bank of Minneapolis working paper argued that a tax on Bitcoin or even a ban of the digital currency could help governments manage their deficits.
These central bank papers come just days after Italy announced a proposed hike in capital gains tax on Bitcoin to 42% from 26%.
The BTC price has declined by 0.1% in the last 24 hours, trading at $68,316 as of 6:58 a.m. EST, according to CoinGecko.
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