Whereas the proponents of bitcoin see it as the savior of the world’s financial crises, its critics also term it a scam or Ponzi scheme.

Notably, central banks around the world have never been a big fan of bitcoin and crypto in general. In a recent panel discussion at Vienna, the former Director-General of the European Central Bank (ECB), Aurel Schubert termed bitcoin an illusion. According to Schubert, in the future, bitcoin will be one of those objects on display in the Museum of Illusions. He however claims central banks and fiat money will be in existence for long.

Schubert admitted that the current digital market demands some quick, safe, cross-border payments solution which will be available 24/7. He said the ECB currently has local payments solutions, however, they are compartmentalized and hence, not fit for the global economy.

The former ECB executive is of the opinion that Bitcoin is neither a currency nor a solution. He claims that the focus of the Bitcoin market is on making capital gains, sounding like a Ponzi scheme. He also questioned Bitcoin being a medium of exchange and the expensive transaction fees on its blockchain.

However, the ECB is making plans to create its own digital currency to strengthen the cross-border payment sector. It stated in a previously published document that if industry efforts fall short of developing an innovative and efficient pan-European payment solution, the social need for it could potentially be met by issuing a CBDC.