At the prestigious BIS Innovation Summit 2024, renowned Israeli historian, philosopher, and bestselling author Yuval Noah Harari took center stage to share his thought-provoking views on the world of bitcoin and electronic currency. In a move that sent shockwaves through the crypto community, Harari expressed his strong disapproval of bitcoin, going so far as to describe it as money "built on distrust."

#### Harari's Critique of Bitcoin: A Historical Perspective

During his captivating presentation, Harari delved into his dislike for bitcoin, the groundbreaking cryptocurrency created by the mysterious Satoshi Nakamoto. From a historical standpoint, Harari finds bitcoin problematic, as he believes it is fundamentally rooted in a lack of trust. He meticulously explained the core concept of bitcoin, which revolves around the idea of being a digital version of gold, and the underlying motivation behind it—to avoid placing trust in banks and governments with the power to create unlimited money.

Harari passionately argued that bitcoin symbolizes a currency of distrust, a stark contrast to the historical trend of entrusting banks and governments with the authority to create money, a practice that has fostered trust within society. His critique struck a chord with the audience, igniting a thought-provoking discussion on the role of trust in financial systems and the implications of decentralized currencies.

#### Harari's Concerns: AI and the Future of Electronic Currency

Expanding his scope beyond bitcoin, Harari expressed grave concerns about the potential risks posed by artificial intelligence (AI) to humanity and global civilizations. He believes that AI represents a quantum leap in technological advancement, surpassing even groundbreaking milestones like the invention of the printing press. Harari's warnings underscored the need for careful consideration and responsible development of AI technologies.

Despite his reservations about bitcoin, Harari acknowledged the uncertainty surrounding the future evolution of electronic currency over the coming decades. However, he remains hopeful for the emergence of a currency based on greater trust rather than distrust, a sentiment that resonates with those seeking stability and reliability in the financial realm.

#### Backlash and Debate: Crypto Community Responds

Harari's remarks drew swift and passionate criticism from cryptocurrency enthusiasts, including Charles Hoskinson, the co-founder of Cardano. Hoskinson, known for his outspoken nature, described Harari's perspective as "Dunning-Kruger on steroids," a reference to the cognitive bias where individuals with limited knowledge overestimate their abilities and expertise.

The clash of opinions between Harari and the crypto community highlights the fundamental debate surrounding trust in financial systems. While Harari advocates for a more traditional approach rooted in established institutions, the crypto sector champions innovation and decentralization as a means to challenge the status quo and empower individuals.

#### The Way Forward: Reconciling Trust and Innovation

As the dust settles on Harari's controversial statements, the global community is left to ponder the delicate balance between trust and innovation in the realm of electronic currency and beyond. The future of finance and technology hangs in the balance, as stakeholders from various backgrounds grapple with the implications of Harari's warnings and the crypto community's unwavering belief in the transformative power of decentralized systems.

The BIS Innovation Summit 2024 has undoubtedly left a lasting impact, igniting a crucial dialogue on the intersection of trust, innovation, and the ever-evolving landscape of electronic currency. As the world watches with bated breath, the question remains: will the future be built on trust or distrust, and which path will lead to a more secure and prosperous financial landscape for all?