Ben Bernanke, former chairman of the Federal Reserve and in addition 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 in addition crypto lenders corresponding to Celsius and Blockfi, has made analysts reassess the actual contribution that cryptocurrencies have on the sector of economics.
Ben Bernanke, some of the famend economists and co-winner of the 2022 Nobel Prize in economics for his analysis on banks and monetary crises, just lately said his opinion on cryptocurrency within the wake of the present scenario the market is dealing with.
In an interview revealed by the Swedish journal Dagens Nyheter on Dec. 7, Bernanke said 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 said:
I consider that thus far cryptocurrencies haven’t been proven to have any financial worth in any respect.
Bernanke’s detrimental opinion on crypto isn’t new, as he has additionally made related remarks up to now. In Could, Bernanke mentioned bitcoin was used “largely for underground financial system actions and infrequently 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 may well attain the standing of another foreign money.
Regulation Gained’t Assist
Whereas a number of specialists have referred to as for regulation on the cryptocurrency entrance as a means for extra residents to succeed in 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 largely used for legal exercise.
Nevertheless, up to now, Bernanke was extra open to the thought of bitcoin and different cryptocurrencies changing into a menace to conventional fiat currencies. Again in 2017, Bernanke said that if bitcoin was close to to having equal transactionality as conventional currencies, laws can be issued as a way to cease it. On the time he remarked:
Ultimately 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 under.
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