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Cryptocurrencies are like ponzi schemes, World Bank chief says

Jim Yong Kim expresses doubt about legitimacy of digital coins.

The head of the World Bank compared cryptocurrencies to “Ponzi schemes,” the latest financial voice to raise questions about the legitimacy of digital currencies such as Bitcoin.

“In terms of using Bitcoin or some of the cryptocurrencies, we are also looking at it, but I’m told the vast majority of cryptocurrencies are basically Ponzi schemes,” World Bank Group President Jim Yong Kim said Wednesday at an event in Washington. “It’s still not really clear how it’s going to work.”

The development lender is “looking really carefully” at blockchain technology, a platform that uses so-called distributed ledgers to allow digital assets to be traded securely. There’s hope the technology could be used in developing countries to “follow the money more effectively” and reduce corruption, Kim said.

The value of cryptocurrencies soared in 2017 before slumping, with Bitcoin losing nearly two-thirds of its value since mid-December.

While cryptocurrency technology has the potential to reshape global finance, concerns have been raised about its volatility and the potential for money laundering or other crimes.

In a speech this week, Bank of International Settlements chief Agustin Carstens said there’s a “strong case” for authorities to rein in digital currencies because their links to the established financial system could cause disruptions. Federal Reserve Chair Jerome Powell has said that “governance and risk management will be critical” for cryptocurrencies.

© 2018 Bloomberg

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I agree with you mate, but you saying it will only trigger a whole load of conspiracy theory nutters telling us that you’re utterances are proof of your illuminati credentials. Best if you said nothing.

“blockchain technology, a platform that uses so-called distributed ledgers to allow digital assets to be traded securely“

How ironic then that to date far more crypto value has been stolen from exchanges than has been traded for actual goods or services.

digital Kubus IMO

Centralization fighting off decentralization. How dare civilians print money and compromise the established financial system!

Cryptos aren’t compromising the established system.

Blockchain will undoubtedly improve it. Crypto currencies will no doubt have their place in the not too distant future, but regulation is required to stop it becoming an obvious currency for money launderers and other criminals.

Cryptos won’t impact upon a nation’s sovereign wealth, because “money” isn’t wealth, it’s merely a way of transferring it. It may well impact upon a nation’s tax base through tax evasion though – hence the need for regulation…

What is the sense in owning bitcoin if it is regulated? Bitcoin offers anonymity and exchange controls and borders does not stop it. When it is regulated, it loses anonymity and the investor will be required to FICA. Then he might as well simply use his local currency or gold if bitcoin is seen as a currency or a commodity.

It is the anonymity of Bitcoin that gives it value.

Not quite: cryptos are also centralized….by the most powerful, financial groups/companies can afford the best high-end computing power & electricity/solar panels. They control (most of) mining….not you or me.

So under which “control” you want to fall? those of central banks with all the checks & balances, or a under a powerful faceless group of unknown people, only known via code.

Secondly, thinking that central govts printing of Fiat-money are ludicrous, is NOTHING compared to cryptos:
there’s 180 world currencies vs thousands of mostly obscure cryptos (many considered shitcoins). Easier just to design new crypto software, or fork off from existing coin.

Crypto’s has taken “money printing” to the extreme. They perfected it 😉

On the other hand, to be fair, crypto-trading nicely fills the gap left by online casinos *lol*

“While cryptocurrency technology has the potential to reshape global finance, concerns have been raised about its volatility and the potential for money laundering or other crimes.” – HSBC doesn’t like competition when it comes to money laundering or other crimes.

Now why would the boss of all banking bosses waste his time to offer an opinion on Bitcoin? The chief of the World Bank don’t even bother calling true ponzi schemes a ponzi scheme, so why bother doing so when something is developing into an alternative method of payment? They did not even bother to say anything while Bernie Madoff was operating the biggest ponzi scheme in the history of the USA.

You may ignore the opinion of your local bank manager, but you don’t ignore the opinion of the head of the World Bank. When he comes out to give his opinion on something he has been thinking about it for a long time. Not only that, he also consulted with the heads of all Reserve Banks and asked his technical advisers for their opinion.

Why doesn’t he call gold, oil, wheat or the share-price of Tencent a ponzi scheme? A ponzi scheme is bad right? so by calling cryptos a ponzi scheme he is saying that he does not like cryptos right? So why would he not like cryptos? What is the threat or the danger that cryptos hold for the World Bank?

Answer these questions, and you will know the future of Bitcoin.

See my first comment under this article. I did warn you folks.

concerns have been raised about its volatility and the potential for money laundering or other crimes.”
Fiat is the archangel of drug money , dark money , money laundering…..
You buy drugs for ZAR or dollars , you hide your stash in offshore accounts , Panama , you name it
You embezzle gullibly investors on eg JSE—go and look at the skid marks of companies found out ” after the fact” , latest our friend Jooste /Steinhoff .Guptas , here and there also token fines .
Fact is : some people kill for R10 , some for 1 billion.Once your price has been established , you remain a whore on any terms
Market commentatators , analysts , auditors appear to sing in the same choir , go to the same dinner parties–and write their little pieces accordingly
High time that this relic of a Ponzean dimensions from the dark age of skimming the unknowing be disrupted–and it will.If not btc, it will be the next generation software/code

There is very little information on this.But i guess since they operate outside established banking channels, that means this guy was bound to say this.

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