In an interview with the Swedish magazine namely ‘Dagens Nyheter’, acclaimed economist, Ben Bernanke of the US, criticized the entire crypto industry. While criticizing the industry, the economist also lambasted Bitcoin for being unable to acquire any intrinsic value.
Today, the crypto industry has to exert unnecessary criticism mainly because of the unpredicted departures of crypto pioneers such as FTX.
Even with the unhappy endings of crypto lending platforms such as Blockfi and Celcius, the industry has been attacked a lot.
Economists and analysts are hence holding the crypto industry responsible for accelerating the present-day economic instability.
Even if the economy is not directly impacted by the cryptocurrency crashes, the crashes have caused a major problem for investors.
Millions of people have lost billions of dollars in investments that they made to the cryptocurrency platforms.
Unfortunately, the firms such as Celsius and BlockFi have done nothing but result in major losses for the investors.
Attacking of Digital Asset Industry
Ben Bernanke had been one of the fewest economists who enjoyed the privilege of running the affairs of the world’s high-profile economic institutions.
He had served as the Chairman of the world’s globally renowned economic institution i.e. the US Federal Reserve.
In the case of Bernanke, being Chairman of the world’s most powerful economic institution was not enough.
During his career, he won the 2022’s Nobel Prize for his contribution to the global banking and financial sector by compiling award-winning research.
Ex Fed. Chair Blames Crypto for Existing Economy Crisis
He was interviewed by a Swedish magazine on 7th December where he shared his view on digital currencies and the present economic crunch.
Swedish publication, Dagens Nyheter, quotes Bernanke that he said the ‘existing financial system is free from any dangers stemming from crypto industry’.
The publication suggests that Bernanke claimed that none of the financial institutions in the world are holding any digital currencies.
Bernanke stated that cryptocurrencies have been in the field for over a decade but failed in acquiring any intrinsic value.
It isn’t the first time that Bernanke has lambasted cryptocurrencies. In fact, on several occasions in the past, he had passed such crypto offensive remarks.
For instance in May this year, Bernanke took his criticism to Bitcoin and named it ‘an underground economy’. It shows that he not only disregards Bitcoin but also claims it to be a source of illicit and illegal activities.
While giving an interview, he emphasized that to him Bitcoin isn’t a worthy investable instrument because it is poised with unnecessary speculation.
He also rejected the idea that digital currencies are better alternatives to fiat currencies. He argued however that electronic means of payment are rather better alternatives to cryptocurrencies.
As regards regulations, Bernanke argued that regulations are essential for industries, however, crypto doesn’t need one because it isn’t an industry.
He refuted the claim that if regulations are put in place, the crypto industry can thrive positively and in a transparent manner.
Instead, he claimed that crypto has already bought a lot of time for itself, and now is the time to meet its destined fate.
He stated that the crypto industry would continue to see its leaders falling because it has no better use than encouraging criminal activities.
It may be noted that Bernanke was amongst those who strongly advocated against digital assets, especially Bitcoin, in the past.
Despite criticizing the crypto technology, his words may have given hope to the industry. He stated that the cryptocurrency industry may get fixed if the people running the sector work on its stability.
If the crypto industry works hard to get rid of the criminal and fraudulent factors, it has a chance to survive.
Worldwide Action against Crypto
He was seen openly debating in the past that the global financial system has been exposed to extreme dangers by crypto.
He even warned that fiat currencies have been devalued by an asset (Bitcoin) that has no intrinsic value at all.
At the end of the interview, Bernanke warned that worldwide governments would not hesitate in taking due actions against crypto when the time comes.