all about cryptop referances
Ben Bernanke, former chairman of the Federal Reserve and also the winner of the 2022 Nobel Prize in Economics, recently blasted the concept of cryptocurrencies. In an interview with Dagens Nyheter, one of the largest Swedish newspapers, Bernanke noted that cryptocurrencies have not proven that they have any economic value at all.
The decline of certain cryptocurrency companies such as FTX, which was one of the largest cryptocurrency exchanges, and also crypto lenders such as Celsius and Blockfi, have made analysts re-evaluate the real contribution that cryptocurrencies have in the financial field.
Ben Bernanke, one of the most renowned economists and co-winner of the 2022 Nobel Prize in Economics for his research on banks and financial crises, recently expressed his opinion on cryptocurrency in the wake of the current situation facing the market.
In an interview published by the Swedish newspaper Dagens Nyheter on December 7, Bernanke stated that he does not believe cryptocurrencies pose a threat to the current financial system because no bank is sitting on a large pile of these assets. He stated:
I believe that so far cryptocurrencies have not been shown to have any economic value at all.
Bernanke’s negative opinion about crypto is not new, as he has also made similar comments in the past. In May, Bernanke said bitcoin was used “mostly for underground financial activities and often things that are illegal or illegal.” He further explained that while bitcoin is used as a speculative asset, he does not believe it can reach the status of an alternative currency.
While several experts have called for regulation on the cryptocurrency front as a way for more citizens to reach crypto in the mainstream, Bernanke argues that regulated or not, cryptocurrency is destined to fail.
In this regard, he explained:
Either they are not regulated and then they will collapse because people distrust them or they will be regulated and then they will collapse because they are mostly used for criminal activity.
However, Bernanke was previously more open to the idea of bitcoin and other cryptocurrencies becoming a threat to traditional fiat currencies. Back in 2017, Bernanke stated that if bitcoin came close to having the same transactionality as traditional currencies, regulations would be issued to stop it. At that time he said:
Eventually, governments will take the measures they need to prevent it.
What do you think of the recent statements made by Nobel laureate Ben Bernanke about the economic value of cryptocurrencies? Tell us in the comments section below.
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