Why 37 European Banks Are Launching Their Own Cryptocurrency
Text version of the latest "Deconstruction."
This week, “Deconstruction” focuses on the launch of the first quantum computer in the UAE, SpaceX’s secret bitcoins, crypto companies’ accounts at the Federal Reserve, and the death of the cypherpunk movement.
The Threat of “Quantum Utility”
Quantum computers are no longer a future technology; they are entering the stage of “quantum utility”, posing a real threat to the encryption algorithms of Bitcoin and Ethereum.
Protection against quantum hacking requires sacrifices—tests of post-quantum solutions have already shown a reduction in blockchain throughput by 20–40%. While Ethereum plans a transition by 2029, Bitcoin developers are notably lagging in discussions on protection.
SpaceX Bitcoins and the End of Free AI
The SpaceX IPO sets a new standard where buying shares in a rocket company means indirect investment in crypto and AI.
Top analytical platforms misjudged SpaceX’s hidden reserves by more than 100%—the company holds 18,712 BTC worth $1.3 billion. This proves that we are far from understanding the real volumes of cryptocurrency on corporate balance sheets.
Meanwhile, Musk’s lawsuit with OpenAI confirmed that cutting-edge AI will remain closed, forcing Web3 startups to abandon direct competition and focus on absolute privacy and protection from censorship.
Banks’ Plans to Capture Cryptocurrency
Governments are transferring the competition of national currencies to the blockchain. Trump allows crypto companies direct access to the US Federal Reserve, while 37 European banks are creating their own euro stablecoin to combat the digital dollar.
Traditional financiers consider backing stablecoins with gold, as Tether does, a huge risk that could trigger a liquidity crisis. This will inevitably lead regulators to force issuers to abandon risky assets in favor of government bonds.
The End of Cypherpunk?
The Web3 industry has almost completely lost its original ideology of independence, trading privacy for convenience, and ceding the role of a payment medium to a controlled quasi-fiat in the form of stablecoins.
Despite blockchain becoming part of the banking system and decentralization remaining merely a declaration, the ideas of crypto-anarchism are not destroyed. Their popularity could sharply increase in the event of another global financial collapse, which the world is now likely approaching.
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