European Central Bank has proposed a ban on cryptocurrencies. Yes, but the ban is not on all cryptocurrencies, only on those with excessive ecological footprint. In other words, they want to ban all cryptos that make use of Proof of Work (PoW) that make use of ASIICS or graphics cards to mine new transactions, blocks and keep blockchain network secure.
Two types of blockchains, proof of work and proof of stake. POW uses a lot of electricity, POS does not. it means those blockchains that use Proof of Work. Which is primarily Bitcoin. It used to be Ethereum, but not long ago they swapped to Proof of Stake.
May be the European Central Bank should try fixing EU bond market first, or may be explain how long ECB plans to borrow money from Germany to support Italy, Greece and how it is sustainable in the long run?
Should we panic now? Well, this resolution, if passed will come into effect in 2024 so there is plenty of time to either make Bitcoin Proof of Stake (PoS) or use only reusable energy to mine Bitcoin and keep its network alive.
That’s like banning air. Not possible. 🤷♂️🤷♂️🤷♂️ https://t.co/qKCqgEsE55
— Kamal Singh 👑 (@emphatic) December 8, 2022
Who is going to tell these Central Banks that decentralized cryptocurrencies, like Bitcoin, cannot be banned because they are not controlled by any central authority. They operate on a decentralized network of computers and use cryptographic protocols to secure transactions and prevent counterfeiting.