Joseph Stiglitz, the former Chief Economist of the World Bank has given a signal to all cryptocurrency enthusiasts that central banks are yet to pass stringent laws on cryptocurrency and that all is not rosy yet. The only reason why the action has been delayed is because the market is relatively smaller than the mainstream economy.
The Columbia University Professor feels that the problems arise from within the cryptocurrency community itself. From his point of view, there are two teams on the cryptocurrency battlefield. One group wants complete anonymity during transactions while the opposite team wants transparency necessary for central bank regulations. Stiglitz said:
“You cannot have a means of payment that is based on secrecy when you’re trying to create a transparent banking system. If you open up a hole like bitcoin then all the nefarious activity will go through that hole, and no government can allow that.”
Professor Stiglitz also said that the authorities are waiting for Bitcoin to become completely mainstream before a legal crackdown can be initiated. He pointed out that:
“People in power will move to regulate anonymous transactions. That you can be sure of. Bitcoin could easily be worth just $100 in 10 years.”
According to him, he is not anti-crypto but rather anti-Bitcoin. He feels that an open market like the United States can make full use of a more open and secure payment system. This would help in curbing the rampant corruption and frauds prevalent in the economic system.
“I believe very strongly that countries like the United States could and should move to a digital currency … so that you would have the ability to trace this kind of corruption.”
A crypto enthusiast humorously commented:
“When a Nobel prize-winning economist makes a comment on cryptocurrency it is bound to create a ripple(Get it?) in the crypto community.”
Recent reports show that over $700 million has been stolen from cryptocurrency exchanges in 2018 compared to the relatively lower number of $266 million in 2016.
This is not the first time that Stiglitz has been negative about Bitcoin and he’s not alone in that boat. Prominent personalities like Bill Gates, Warren Buffet and IMF Managing Director Christine Lagarde have also shared their opinions on the cryptocurrency.
The post Bitcoin [BTC] may drop to $100: Nobel Prize Laureate appeared first on AMBCrypto.