Ben Bernanke, former chairman of the Federal Reserve and likewise the winner of the 2022 Nobel Prize in economics, has just lately blasted the idea of cryptocurrencies. In an interview with Dagens Nyheter, one of many greatest Swedish journals, Bernanke remarked that cryptocurrencies haven’t confirmed they’ve any financial worth in any respect.
Ben Bernanke Blasts Crypto
The demise of sure cryptocurrency firms like FTX, which was one of many largest cryptocurrency exchanges, and likewise crypto lenders similar to Celsius and Blockfi, has made analysts reassess the true contribution that cryptocurrencies have on the sector of economics.
Ben Bernanke, one of the vital famend economists and co-winner of the 2022 Nobel Prize in economics for his analysis on banks and monetary crises, just lately acknowledged his opinion on cryptocurrency within the wake of the present state of affairs the market is dealing with.
In an interview printed by the Swedish journal Dagens Nyheter on Dec. 7, Bernanke acknowledged he doesn’t suppose cryptocurrencies represent a menace to the present monetary system as a result of no financial institution is sitting on a big pile of those property. He acknowledged:
I consider that to date cryptocurrencies haven’t been proven to have any financial worth in any respect.
Bernanke’s adverse opinion on crypto is just not new, as he has additionally made related remarks prior to now. In Might, Bernanke mentioned bitcoin was used “principally for underground economic system actions and sometimes issues which might be unlawful or illicit.” He additional defined that whereas bitcoin is getting used as a speculative asset, he doesn’t suppose it could possibly attain the standing of an alternate foreign money.
Regulation Received’t Assist
Whereas a number of specialists have known as for regulation on the cryptocurrency entrance as a manner for extra residents to achieve crypto within the mainstream, Bernanke argues that regulated or not, cryptocurrencies are destined to fail.
On this regard, he defined:
Both they don’t seem to be regulated after which they may collapse as a result of individuals mistrust them or they’re regulated after which they may collapse as a result of they’re principally used for felony exercise.
Nonetheless, prior to now, Bernanke was extra open to the concept of bitcoin and different cryptocurrencies changing into a menace to conventional fiat currencies. Again in 2017, Bernanke acknowledged that if bitcoin was close to to having equal transactionality as conventional currencies, laws could be issued to be able to cease it. On the time he remarked:
Finally governments will take any motion they should forestall it.
What do you concentrate on the current statements of Nobel Prize laureate Ben Bernanke on the financial worth of cryptocurrencies? Inform us within the feedback part beneath.
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