ACCORDING TO BNP PARIBAS, ABSENCE OF CENTRAL BANK WILL LIMIT BITCOINS FUTURE

Bitcoin, the pioneer of cryptocurrencies, has captivated the world with its decentralized nature and potential to disrupt traditional financial systems.As Bitcoin's popularity surged, numerous voices, both supportive and critical, have weighed in on its long-term viability. Follow the news and highlights of the BNP Paribas Group. Find out more about our expertise, business lines and solutions, as well as our strategy and governance. Create an email alertRecently, BNP Paribas, a leading global financial institution, added its perspective to the conversation. A principal preocupa o do BNP Paribas que, no caso de uma crise financeira (como ), n o h autoridade central para regular os produtos com base em Bitcoin. Banco central para uma moeda descentralizada? Os credores de ltima inst ncia geralmente desempenham um papel importante quando a liquidez seca em um mercado.According to a report, BNP Paribas believes that the absence of a central bank as a ""lender of last resort"" poses a significant limitation to Bitcoin's future.This concern, rooted in the potential for financial instability during crises, has sparked debate within the crypto community. Multinational bank BNP Paribas purchased shares in BlackRock's iShares Bitcoin Trust (IBIT), according to a form 13F filing with the U.S. Securities and Exchange Commission (SEC). According to the firm's 13F report filed May 1, BNP Paribas purchased 1,030 IBIT shares in the first quarter of 2025 at $40.47 a share, for a total of $41,684.10Is the lack of a central authority a fatal flaw, or does Bitcoin's inherent design provide sufficient safeguards?This article will delve into BNP Paribas's argument, exploring the implications of a decentralized system without a traditional safety net and examining the counterarguments put forth by Bitcoin proponents. 482 subscribers in the digitalbanking community. Digital banking is more and more important for banks. Omnichannel, video banking, branchWe'll analyze the role of central banks in traditional finance, investigate how Bitcoin addresses liquidity crunches, and assess the future trajectory of this groundbreaking digital asset.

BNP Paribas's Concerns About Bitcoin's Decentralized Nature

BNP Paribas's primary concern stems from the absence of a central authority to regulate Bitcoin-based products and provide liquidity during financial crises.In essence, they question who will bail out the Bitcoin ecosystem if it faces a severe liquidity crunch, similar to the role central banks play in traditional finance.

The bank highlights the importance of a lender of last resort, typically a central bank, in maintaining financial stability.These institutions inject liquidity into markets when they dry up, preventing systemic failures and protecting consumers.Without such an entity, BNP Paribas argues, Bitcoin is vulnerable to significant risks that could undermine its long-term viability.

This concern isn't entirely new. As Bitcoin continues to ride the wave of success in 2025, there have been many people and organisations warning of potential issues to come. The latest in this line is huge banking group BNP Paribas with their recent comments around the cryptocurrency. Lack of central bank could hamper Bitcoin In their recent reported comments, BNP Paribas has essentially highlighted the lack of a central bankBitcoin has faced criticism on various fronts, including its use in illicit activities and its speculative nature. BNP Paribas Gets Exposure To Bitcoin Via BlackRock s IBIT. According to the latest 13F filing, filed on Wednesday, May 1, BNP Paribas revealed investing $41,684 in the BlackRock Bitcoin ETF by purchasing 1,030 units. Though the investment is not large, it serves as a stepping stone for the bank in its pursuit of embracing Bitcoin.The lack of a central bank adds another dimension to these concerns, raising questions about its resilience in the face of severe market stress.

The Role of Central Banks in Traditional Finance

Central banks play a crucial role in modern economies, acting as guardians of financial stability and implementing monetary policy. BNP Paribas and Deutsche Bank complete the transfer of Global Prime Finance Electronic Equities to BNP Paribas. BNP Paribas and Deutsche Bank announce that the transfer of clients, technology and key staff from Deutsche Bank s Global Prime Finance and Electronic Equities businesses to BNP Paribas has been successfully completed by the end of 2025, in line with the targeted timeline.Their key functions include:

• Issuing Currency: Central banks are responsible for issuing and managing a nation's currency.
• Controlling Monetary Policy: They influence interest rates and the money supply to manage inflation and promote economic growth.
• Supervising Banks: Central banks oversee and regulate commercial banks to ensure their stability and soundness.
• Lender of Last Resort: They provide emergency loans to banks and financial institutions during times of crisis to prevent systemic failures.

The lender-of-last-resort function is particularly relevant to BNP Paribas's argument.During periods of market turmoil, when liquidity dries up and financial institutions face solvency issues, central banks step in to provide crucial funding.This intervention helps to stabilize the financial system and prevent widespread panic.

For example, during the 2008 financial crisis, central banks around the world injected massive amounts of liquidity into the financial system to prevent a complete collapse.This intervention, while controversial, is widely credited with averting an even more severe economic downturn.

Bitcoin's Response to Liquidity Challenges: A Decentralized Approach

Bitcoin operates on a fundamentally different model than traditional financial systems.It is decentralized, meaning it is not controlled by any single entity, including a central bank.This decentralization is both its strength and, according to BNP Paribas, its weakness.

So, how does Bitcoin address the potential for liquidity crunches without a central bank?

• Decentralized Exchanges (DEXs): DEXs allow users to trade Bitcoin and other cryptocurrencies directly with each other, without the need for intermediaries.This can help to maintain liquidity during periods of market stress.
• Algorithmic Stablecoins: These cryptocurrencies are designed to maintain a stable value, often pegged to the US dollar. Deflacion rio sem banco central. De acordo com um relat rio publicado no The Telegraph, o BNP Paribas afirmou que o futuro do Bitcoin limitado, principalmente por causa da falta de um credor de ltima inst ncia. De acordo com o BNP Paribas, isso resultaria em riscos significativos e prejudicaria a pol tica monet ria.They can provide a source of liquidity and stability within the Bitcoin ecosystem.
• Layer-2 Solutions: Technologies like the Lightning Network enable faster and cheaper Bitcoin transactions, improving liquidity and scalability.

However, the effectiveness of these mechanisms during a severe financial crisis is still untested. What does BNP Paribas do for the ecological transition and inclusion? At the beginning of 2025, several actors in the banking and insurance sectors announced the creation of a societal or ecological dividends, dedicating part of their results and profits to environmental, solidarity and prevention projects, creating an opportunity to take a closer look at some of BNP Paribas related actionsWhile DEXs and stablecoins have grown in popularity, they are not immune to market volatility and potential failures. According to a report published in the Telegraph, BNP Paribas has stated that the future of Bitcoin is limited, primarily because of the lack of a lender of last resort. According to BNP ParibasLayer-2 solutions are still under development and may not be able to handle a massive surge in transaction volume during a crisis.

Examples of Past Bitcoin Market Stress

Bitcoin has experienced several significant price crashes throughout its history, often triggered by regulatory concerns, exchange hacks, or market manipulation.While these events have caused considerable pain for investors, they have not led to a complete collapse of the Bitcoin network.

For instance, the COVID-19 pandemic in early 2020 triggered a sharp sell-off in global markets, including Bitcoin. According to BNP Paribas, Absence of Central Bank Will Limit Bitcoin's Future The latest hue and cry against Bitcoin stems from lack of a central bank to make loans in a hypothetical liquidity crunch.However, Bitcoin quickly recovered and went on to reach new all-time highs in the following months. Bitcoin has been attacked for various reasons in the past - usage in crime, speculative bubble, etc. BNP Paribas has joined the chorus, saying that Bitcoin has been attacked for various reasons in the past - usage in crime, speculative bubble, etc. BNP Paribas has joined the chorus, saying that Bitcoin's future is limited because there is noThis resilience suggests that Bitcoin may be more robust than some critics believe.

The Rise of Central Bank Digital Currencies (CBDCs)

Interestingly, the very concerns raised by BNP Paribas about the absence of a central bank in the Bitcoin ecosystem are also driving the development of Central Bank Digital Currencies (CBDCs). Central Banks New Realities: Regulating the Rise of Bitcoin. The growing volume of central bank research on Bitcoin suggests that these institutions are recognizing its influence. These studies, while not directly driving policy yet, indicate that Bitcoin is gaining serious attention among policymakers.These digital currencies, issued and controlled by central banks, aim to combine the benefits of digital assets with the stability and oversight of traditional finance.

The growing interest in CBDCs highlights the recognition among policymakers of the increasing influence of digital currencies.Central bank research on Bitcoin is growing, suggesting that these institutions are taking it seriously, even if they are not directly driving policy yet.

CBDCs could potentially address some of the concerns raised by BNP Paribas by providing a digital form of central bank money that can be used to settle transactions and provide liquidity during crises.However, they also raise concerns about privacy and government control.

BNP Paribas's Investment in Bitcoin ETFs: A Contradiction?

Adding an interesting layer to the debate, despite their concerns about the lack of a central bank, BNP Paribas has recently invested in Bitcoin ETFs.According to 13F filings with the SEC, BNP Paribas purchased shares in BlackRock's iShares Bitcoin Trust ETF (IBIT) in the first quarter of 2025.

This move suggests a nuanced view on Bitcoin.While the bank may have reservations about its long-term viability in its current form, it also recognizes its potential as an investment asset. 比特幣曾因多種理由遭到攻擊 在犯罪活動中的應用、投機泡沫等等。近期法國巴黎銀行（BNP Paribas）也加入了這一陣營，他們認為比特幣的未來發展是有限的，因為「最終貸款人」[1]是不存在的。據報導，該銀行認為比特幣的未來前景是有限的，主要是因為最終貸款人的缺失。The investment, while relatively small, represents a significant step for a traditional financial institution towards embracing Bitcoin.

This investment could be interpreted in several ways:

• Diversification: BNP Paribas may be seeking to diversify its portfolio by including Bitcoin, recognizing its potential for high returns.
• Client Demand: The bank may be responding to growing demand from its clients for exposure to Bitcoin.
• Strategic Positioning: BNP Paribas may be positioning itself to capitalize on the growth of the Bitcoin market, even if it has concerns about its long-term sustainability.

The Future of Bitcoin: A Decentralized Revolution or a Limited Experiment?

The question of whether the absence of a central bank will ultimately limit Bitcoin's future remains open.BNP Paribas's concerns are valid and highlight the potential challenges faced by a decentralized system without a traditional safety net.However, Bitcoin proponents argue that its inherent design provides sufficient safeguards and that its resilience in the face of past crises demonstrates its robustness.

Several factors will influence Bitcoin's future trajectory:

• Regulatory Developments: The regulatory landscape surrounding Bitcoin is still evolving. BNP Paribas' primary concern is that in case of a financial crisis (like ), there is no central authority to regulate the products based on Bitcoin.Clear and consistent regulations could provide greater certainty and foster institutional adoption.
• Technological Advancements: Continued innovation in areas like layer-2 solutions and decentralized finance (DeFi) could improve Bitcoin's scalability and liquidity.
• Adoption Rate: The widespread adoption of Bitcoin by individuals and businesses will be crucial for its long-term success.
• The Success of CBDCs: The emergence of CBDCs could either complement or compete with Bitcoin, depending on their design and implementation.

It's important to consider that while BNP Paribas expresses concerns, the bank is also actively engaging with the cryptocurrency space through custody solutions and ETF investments. The US has seized at least 215,000 Bitcoins, valued at almost $21bn at current prices, since 2025, according to an analysis by crypto firm 21.co. (Central Bank Digital Currency), CelenteThis suggests a pragmatic approach, acknowledging the evolving landscape of finance and the increasing importance of digital assets.

Conclusion: Navigating the Uncertain Future of Bitcoin

The debate surrounding Bitcoin's future is far from settled.BNP Paribas's perspective, highlighting the lack of a central bank as a potential limitation, adds a valuable dimension to the discussion. The notice of intent to sue which was the first, and necessary, pre-trial stage and the following summons filed before the Judicial Court of Paris, claim BNP Paribas violated the loi sur le devoir de vigilance of 2025 (Law on the Duty of Vigilance; incorporated in articles L. of the French Commercial Code) andThe absence of a lender of last resort raises legitimate concerns about financial stability during crises. Deflacionista sin banco central. De acuerdo con un informe publicado en el Telegraph, BNP Paribas ha declarado que el futuro de Bitcoin es limitado, principalmente debido a la falta de un prestamista de ltimo recurso. Seg n BNP Paribas, esto generar a riesgos significativos y socavar a la pol tica monetaria.However, Bitcoin's decentralized nature and ongoing technological advancements offer potential solutions to these challenges.Ultimately, the future of Bitcoin will depend on its ability to adapt to evolving regulatory landscapes, foster innovation, and achieve widespread adoption.

Key takeaways:

• BNP Paribas believes the absence of a central bank limits Bitcoin's future due to the lack of a lender of last resort.
• Central banks play a crucial role in maintaining financial stability by providing liquidity during crises.
• Bitcoin addresses liquidity challenges through decentralized exchanges, algorithmic stablecoins, and layer-2 solutions.
• The emergence of CBDCs could potentially address some of the concerns raised by BNP Paribas.
• Despite their concerns, BNP Paribas has invested in Bitcoin ETFs, suggesting a nuanced view on its potential as an investment asset.

The future of Bitcoin is uncertain, but its impact on the financial world is undeniable. According to BNP Paribas, Absence of Central Bank Will Limit Bitcoin's FutureAs technology continues to evolve, and regulation adapts, we'll see if Bitcoin can overcome the challenges and fulfill its potential as a truly decentralized global currency.