By Sergio Goschenko
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 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 firms like FTX, which was one of many largest cryptocurrency exchanges, and likewise crypto lenders comparable 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 going through.
In an interview revealed by the Swedish journal Dagens Nyheter on Dec. 7, Bernanke acknowledged he doesn’t suppose cryptocurrencies represent a risk to the present monetary system as a result of no financial institution is sitting on a big pile of those property. He acknowledged:
I imagine that up to now cryptocurrencies haven’t been proven to have any financial worth in any respect.
Bernanke’s damaging opinion on crypto isn’t new, as he has additionally made related remarks previously. In Could, Bernanke mentioned bitcoin was used “largely for underground financial system actions and infrequently issues which are unlawful or illicit.” He additional defined that whereas bitcoin is getting used as a speculative asset, he doesn’t suppose it will probably attain the standing of another 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 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’ll collapse as a result of individuals mistrust them or they’re regulated after which they’ll collapse as a result of they’re largely used for prison exercise.
Nonetheless, previously, Bernanke was extra open to the thought of bitcoin and different cryptocurrencies turning into a risk to conventional fiat currencies. Again in 2017, Bernanke acknowledged that if bitcoin was close to to having equal transactionality as conventional currencies, rules could be issued with a purpose to cease it. On the time he remarked:
Ultimately governments will take any motion they should stop it.