World Bank Group President Jim Yong Kim has warned against cryptocurrencies, saying that it is compared to “Ponzi schemes”.
While speaking at an event in WasIn his speech, Yong Kim gave the latest financial voice to raise questions about the legitimacy of digital currencies such as Bitcoin.
He explained that the World Bank is considering the usage of Bitcoin and other cryptocurrencies adding that findings revealed that ‘’vast majority of cryptocurrencies are basically Ponzi schemes,”.
He said the development lender is “looking really carefully” at blockchain technology saying it is a platform that uses so-called ‘’distributed ledgers’’ to allow digital assets to be traded securely.
He added that the technology could be used in developing countries as a means to monitor the movement of money more effectively and to reduce corruption.
According to him, the value of cryptocurrencies soared in 2017 before slumping, with Bitcoin losing nearly two-thirds of its value since mid-December.
He disclosed that cryptocurrency technology has the potential to reshape global finance, saying that it is volatile and has the potential for money laundering and other crimes.
Meanwhile, Nouriel Roubini discusses the downsides to cryptocurrencies and calls Bitcoin the “mother of all bubbles.”
While speaking on issues surrounding cryptocurrency International Settlements Bank chief Agustin Carstens also said there is a “strong case” for authorities to restraint digital currencies because their links to the established financial system could cause disruptions.
