Joseph Stiglitz, the former chief economist of the World Bank, has opined that Bitcoin should be banned as it “doesn’t serve any socially useful function.”
While Bitcoin’s recent gains have prompted interest from some of the world’s largest exchanges, not everyone is as optimistic about the future of digital currencies; and now Joseph Stiglitz, the former chief economist of the World Bank, has given his view that Bitcoin should be outlawed.
In an interview with Bloomberg Television, Stiglitz provided his view that Bitcoin is “a bubble that’s going to give a lot of people a lot of exciting times as it rides up and then goes down… The value of a bitcoin today is expectations of what the bitcoin is going to be tomorrow.”
“Bitcoin is successful only because of its potential for circumvention, lack of oversight,” Stiglitz continued to say. Such views are somewhat echoed by renowned investor Warren Buffet, who recently quipped that Bitcoin is a ‘real bubble’.
Stiglitz continued to provide his view that the US Government could easily disrupt the activities of the Bitcoin network, commenting that “If the government says ‘the reason bitcoin is being used is circumvention,’ they could close it down at any moment… and then it collapses.”
Stigliz’ comments did not elaborate on the fact that the Bitcoin network is a worldwide endeavour, with users and investors found throughout the globe – making the digital currency near-impossible to shut down or disrupt in entirety.
Still, nations around the world continue to mull how to effectively regulate or leverage the emergence of digital currencies. While China and Russia have signalled hardline stances, other nations such as Taiwan and Japan have signalled their interest in fostering the ecosystems and entrepreneurial climate created by cryptocurrencies.
The International Monetary Fund has further expressed its interest in developing its own digital currency in the near future.
What are your thoughts? Are Stiglitz’ comments justified? Be sure to let us know your opinion in the comments below!