Cryptocurrencies Are Like Ponzi Schemes, World Bank Chief Says
The head of the World Bank likened cryptocurrencies to” Ponzi programmes ,” the most recent business utter to raise questions about the legitimacy of digital currencies such as Bitcoin.
” In periods of using Bitcoin or some of the cryptocurrencies, we are also looking at it, but I’m told the vast majority of cryptocurrencies are mostly Ponzi planneds ,” World Bank Group President Jim Yong Kim said Wednesday at an affair in Washington.” It’s still not really clear how it’s going to work .”
The development lender is “looking really carefully” at blockchain engineering, a programme that uses so-called distributed ledgers to give digital assets to be transactions securely. There’s hope information and communication technologies could be used in developing countries to” follow the money more efficiently” and reduce dishonesty, Kim said.
The value of cryptocurrencies flown in 2017 before slumping, with Bitcoin forgetting virtually two-thirds of its quality since mid-December.
While cryptocurrency technology has the potential to reshape world busines, headaches have been raised about its volatility and the potential for money laundering or other crimes.
In a discussion this week, Bank of International Settlements chief Agustin Carstens said there’s a” strong case” for authorities to draw rein digital monies because their links to the proven fiscal structure could make stoppages. Federal Reserve Chair Jerome Powell said” governance and management of risks are very important” for cryptocurrencies.