The president of the Russian central bank attracted the jibes trying to tighten the bridle to Bitcoin.
The terrifying bitcoin always of central bankers
If the European Central Bank remains acerbic towards Bitcoin, that of Russia is not to be outdone. Its president Elvira Nabioullina proposes to “reserve it for the richest individuals”, in a context where the gap between the EU and the United States on Bitcoin is widening.
This is what the Moscow Times Regarding international payments that the Russian central bank makes in Bitcoins to bypass Western financial embargo. Bitcoin turns out to be a very valuable ally while waiting for international tensions to calm down.
These BTC payments are open to banks, insurance companies and investment funds. On the other hand, individuals need an annual income greater than 50 million rubles ($ 580,000) to take advantage of it.
Of course, this restriction only concerns this “” experimental system »» Driven by the central bank. Buying bitcoins is absolutely not prohibited in Russia. That said, businesses are not allowed to accept it in payment.
Like Christine Lagarde, for whom Bitcoin is “A escape”Elvira Nabioullina prefers the CBDC. It has existed since last year, but no one uses it.
This distrust contrasts with the opinion of Vladimir Putin who declared a few months ago:
Who can prohibit Bitcoin? Person. Whatever happens to the dollar, these new technologies will develop in one way or another.
Vladimir Putin, December 2024, Russia Calling
What is the point of prohibiting BTC payments?
Is it a question of preserving the margins of payment companies such as Visa, Mastercard or Mir (Russia)? Probably not, since Bitcoin is far from competitive: $ 6 dollars per transaction in 2024.
Visa and Mastercard for their share 0.3 % on each transaction made by card (it is much more outside Europe and the United States). Their payments are therefore much cheaper in the overwhelming majority of cases.
Obviously, it is possible to use the Lightning Network (LN). The costs are 0.02 % on average for transactions of value between 100 and 1000 euros. It is 0.24 % for transactions between 1 and 10 euros.
Unfortunately, it would be hard to use everyone to use the Lightning Network at the same time. The reason being that pouring bitcoins on its Wallet LN requires first to make a “on-chain” transaction.
In other words, it would take 50 years for each human to be able to achieve a single transaction … The transaction costs would explode each enthusiasm for the LN, which would prevent any enthusiasm from continuing.
So there is not much to fear. Bitcoin can only remain a marginal payment currency because of the limit of 1 MB per block which is at the heart of its decentralization.
In addition, Bitcoin cannot replace the banks. This would already be necessary for governments to agree to abandon their tickets. Unlikely, but let's admit that this is the case.
Can Bitcoin replace the Fiat system?
Imagine that Bitcoin is the one and only currency on earth. Let us experience thought by asking us how to finance the six EPRs for which the bill is estimated at 70 billion euros.
Normally, EDF would take a loan from the BNP Paribas which would create these billions ex nihilo. These billions would then be destroyed as EDF reimburses them (except interest, of course). This is the “Fiat system” operation.
But how do you do if the amount of currency in circulation is fixed? How to find the equivalent of 70 billion in BTC? It would literally have to persuade 7 million French people to lend each equivalent of 10,000 euros for 15 years.
The transition seems very difficult. Creating ex nihilo money seems essential to any complex society.
Without forgetting energy resources. Standard of living = productivity = machines = energy (and especially oil). Without the abundant and inexpensive energy required by productivity, wages cannot follow inflation exacerbated by debt overflowing from governments.
All this to say that central banks have nothing to fear from Bitcoin. Its low transaction flow and fixed money supply prevents it from replacing payment companies and banks. Its superiority is elsewhere.
Bitcoin allows above all to protect themselves from inflation, which impacts disproportionately those who cannot afford rare assets such as prestigious real estate.
Conversely, anyone can appropriate the best reserve of value in the history of humanity (Bitcoin). Whatever you have a million euros, 10,000 euros, 1,000 euros or 100 euros in savings.
Bitcoin is cut to become universal reserve currency. And it's already a lot! Do not miss our article: Bitcoin – Soon a Russian strategic reserve?
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