The scientist, who received this year’s Nobel Prize in Economics, is sure that cryptocurrencies are doomed to failure, regardless of whether they are regulated or not.
Ben Bernanke, who received an award for research on banks and financial crises, said that cryptocurrencies do not pose a threat to the financial system. According to him, so far no bank is fully using digital assets, so their fall or rise has little effect on traditional finance.
Digital currencies have not yet proven their economic strength and value, Bernanke said. Previously, the scientist stated that Bitcoin is a tool for illegal transactions or sponsoring something prohibited, which is unlikely to reach the status of an alternative currency. As for the regulation of the industry, here the expert is completely pessimistic:
“Either digital currencies will not be regulated and then they will collapse because people will not trust them. Or digital currencies will be regulated and then they will collapse, as they are used mainly for illegal activities.”
According to Bernanke, cryptocurrencies are extremely popular with those who evade taxes, finance terrorism or sell drugs. The Nobel Prize winner did not specify where he got the information from, nor did he provide any statistics.
In September, 2013 Nobel Prize winner in economics Eugene Fama said that bitcoin’s viability as a means of payment was fading due to its high volatility.
Source: Bits
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