Ben Bernanke, former chairman of the Federal Reserve and likewise the winner of the 2022 Nobel Prize in economics, has not too long ago blasted the idea of cryptocurrencies. In an interview with Dagens Nyheter, one of many largest 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 corporations like FTX, which was one of many largest cryptocurrency exchanges, and likewise crypto lenders akin to Celsius and Blockfi, has made analysts reassess the true contribution that cryptocurrencies have on the sphere 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, not too long ago said his opinion on cryptocurrency in the wake of the present state of affairs the market is going through.
In an interview revealed by the Swedish journal Dagens Nyheter on Dec. 7, Bernanke said he doesn’t assume cryptocurrencies represent a menace to the present monetary system as a result of no financial institution is sitting on a big pile of those belongings. He said:
I consider that up to now cryptocurrencies haven’t been proven to have any financial worth in any respect.
Bernanke’s destructive opinion on crypto isn’t new, as he has additionally made related remarks in the previous. In Might, Bernanke stated bitcoin was used “principally 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 assume it could attain the standing of an alternate forex.
Regulation Received’t Assist
Whereas a number of specialists have known as for regulation on the cryptocurrency entrance as a means for extra residents to succeed in crypto in the mainstream, Bernanke argues that regulated or not, cryptocurrencies are destined to fail.
On this regard, he defined:
Both they aren’t regulated after which they may collapse as a result of folks mistrust them or they’re regulated after which they may collapse as a result of they’re principally used for prison exercise.
Nevertheless, in the previous, Bernanke was extra open to the thought of bitcoin and different cryptocurrencies turning 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 could be issued in order to cease it. On the time he remarked:
Ultimately governments will take any motion they should stop it.
What do you concentrate on the current statements of Nobel Prize laureate Ben Bernanke on the financial worth of cryptocurrencies? Inform us in the feedback part under.
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