• Charles Hoskinson questioned Fabio Panetta’s arguments on unbacked crypto assets.
• Hoskinson asked in return what backs the euro and dollar.
• Panetta’s blog argued that trading unbacked crypto assets should be considered as gambling.

Charles Hoskinson, the co-founder of Input Output Global, in his recent tweet, questioned the arguments of Fabio Panetta, the executive board member of the European Central Bank (ECB).

Notably, Hoskinson tweeted the statement made by Panetta, “trading of unbacked crypto assets.” He asked him in return, “what backs the euro or dollar?”

Hoskinson tweeted that he will be waiting for a response from Fabio.

Yesterday, Panetta wrote in the official ECB blog, “trading of unbacked digital assets should be treated by regulators like gambling.” He added that the Central Bank Digital Currencies (CBDCs) would help maintain the “trust on which the private forms of money ultimately depend.”

Significantly, in the blog, Panetta  invites attention to the harsh realities of crypto in 2022, specifically referring to the stablecoin TerraUSD, stating:

TerraUSD — a stablecoin that was stable in name only — was among the first to fall in a chain of collapses that brought down several lending platforms, a hedge fund, a leading crypto asset exchange, and most recently a large US-listed crypto mining company.

In addition, Panetta pointed out that the consequences of the unregulated crypto industry are too high, especially for “uninformed investors.” Also, he explained about money laundering and environmental harm, commenting, “it’s not just cryptos that are being burnt.”

When Hoskinson responded to the blog, the Twitter crypto community filled the comment box with mixed responses. While many of them commented ludicrously, there were some who responded seriously.