Bitcoin Is ‘a Myth’ Says French Central Bank Policymaker

A main French scholastic and national bank policymaker has called bitcoin (BTC) a "fantasy" and a "pseudo-cash," and excused the symbolic's odds of turning out to be cash later on, guaranteeing that it neglects to meet models at present satisfied by fiat.

The cases were made in a paper delivered by the Banque de France, the nation's national bank. The paper was wrote by Christian Pfister, a partner educator of financial matters and digital forms of money at the esteemed Pantheon-Sorbonne University. Pfister is additionally the chief general of the national bank's Financial Stability and Operations office.

Pfister is believed to be one of the main planners of the Banque de France's national bank advanced cash (CBDC) strategy, which he additionally examines in the archive.

Pfister is commonly cavalier of bitcoin's odds of long haul achievement, guaranteeing that "original" tokens like BTC are a piece of a "look for a fantasy."

He asserts that bitcoin is essentially used to make "theoretical ventures" and for "doing installment exchanges under a nom de plume, assists with ensuring security yet additionally encourages the financing of illegal exercises."

Citing research distributed in The Review of Financial Studies late year, he echoes the case that "an expected quarter of the complete number of bitcoin exchanges, and almost half as far as worth, are believed to be connected to criminal operations."

He additionally says that BTC is utilized to move finances abroad, yet includes,
"The downside for users, however, is that the associated fees are difficult to evaluate ex-ante due to price volatility in both legs of the transaction. The infrastructure may also become congested as it is ill-equipped to process mass payments."

And like many before him, he rolls out the claim that bitcoin fails on all three counts to meet the three requirements of money as defined by classical economic theorists.

He writes,

"Overall, bitcoin does not fulfill, or only partially fulfills the three functions of money. It is not a units of account (it is rarely if ever used to price goods and services, in particular, labor and capital), nor is it a payment instrument (very few purchases of goods and services are settled in bitcoin), or a store of value (its exchange rate against other currencies, and hence its value in terms of goods and services, is too volatile)"