European warnings about bitcoin risks

 

 

European warnings about bitcoin risks

European bitcoin firm RELAI reports record volumes despite ECB warning for bitcoin

Despite a recent warning from European politicians about bitcoin risks, the Switzerland-based bitcoin app published record results this month.

Relai, a Swiss company offering a bitcoin portfolio application, reported that November 2022 was its best month in terms of volume and revenue.

a press release released to Bitcoin magazine claims

1. The application saw a 60%
2. increase compared to
3. the previous month of October 2022.

The company also reported that November 2022 was its best month for both active and new users

In comparison to September and October combined, there were more downloads of the app in November.

At the same time :

the Director General of Market Infrastructure and Payments at the European Central Bank and a consultant published an article on November 30 entitled "Latest Bitcoin Developments"

The paper criticized Bitcoin's investment thesis and the importance of technology and its importance as a payment mechanism.

Although not necessarily new, this position is

ECB has expressed its disdain for bitcoin before.

" In response to this "

1. and recent statements
2. the CEO and co-founder of
3. Relai Julian Liniger said

If bitcoin is doomed

Why does the ECB put so much effort into always criticizing it?

It seems to boil down to either not understanding bitcoin and mixing it with "encryption," or the ECB actually understands it and scares it.

Looking at numbers and long-term positive feelings in bitcoin society shows that the ECB is far from what is happening in the real world.

In fact :

the ECB is just on its way to bitcoin. 

1. Latest update covered in Bitcoin magazine
2. Means Relai now has 24/7 Bitcoin purchases support on Visa
3. Mastercard and Apple Pay.

With this

and the expected investment in the user experience of the application, the company continues its stated mission of being the easiest and fastest way in Europe to get bitcoin

Is EU about to ban Bitcoin?

MEPs vote against

European bitcoin ban, but proposals could return

Proof of work cryptocurrencies such as bitcoin are safe in Europe right now, but plans to ban environmentally damaging mining may return.

Part of the EU's digital finance strategy, cryptocurrency legislation (MiCA) was pre-amended to remove the controversial clip, but a new amendment was added over the weekend that saw it reinstated.

However, lawmakers decided not to support the change, which drew expected criticism from the cryptocurrency community.

What happened to the vote?

• The European Parliament's Economic

• and Monetary Affairs Committee voted on

• Monday 31-23 not to proceed with an amended version of MiCA

requiring all currency providers to provide detailed proposals on how they comply with environmental sustainability standards.

This would have been almost impossible for cryptocurrencies in business proof such as Bitcoin that rely on energy-intensive mining processes to generate and verify transactions.

Instead :

• The bill will proceed through the legislative process in a more condensed form.

• It states that by 1 January 2025

• the European Commission will submit a new proposal

• "with the aim of including in

the EU's sustainable funding classification any cryptocurrency mining activities that contribute significantly to climate change mitigation and adaptation." This may eventually lead to a ban on business proof currencies, as it leaves more room for further discussion and interpretation.

MEPs voted to negotiate with European governments the final form of the bill.

Why there are calls to ban bitcoin mining?

With each transaction, Bitcoin, Ethereum, and other proof-of-work cryptocurrencies emit a sizable amount of carbon.

Bitcoin's one transaction creates 1259 kilograms of CO2 emissions, the same carbon footprint as a transatlantic flight from London to New York and back again, according to Digiconomist, a research project that examined the effects of cryptocurrency on society and the environment.