Joseph Stiglitz, US public policy analyst and Nobel prize-winning economist, says cryptocurrencies should be shut down around the world, just like the Chinese government recently did, banning all related mining and trading activities.
During an international finance conference hosted by the South Korean Seoul Seoul city government, the economist Joseph Stiglitz mentioned that regulators around the world should consider shutting down cryptocurrencies because they are becoming a popular tool that undermines financial systems.
Crypto undermines financial systems, says Joseph Stiglitz
In addition to that, Stiglitz argued that cryptocurrencies could be harnessed to perpetrate illicit activities that undercut the functioning of societies.
[Cryptocurrencies] are becoming significantly important in terms of undermining the basis of our financial system and transparency of our financial system. […] I’m of the view that now is the time that regulators all over the world to basically shut down cryptocurrencies.said Joseph Stiglitz.
The US economist has been a vocal opponent of Bitcoin and cryptocurrency. Back in 2019, he made a similar statement against cryptocurrency, arguing that digital currencies like Bitcoin cannot guarantee a transparent banking system because of their inherent anonymity.
You cannot have a means of payment that is based on secrecy when you’re trying to create a transparent banking system. If you open up a hole like bitcoin, then all the nefarious activity will go through that hole, and no government can allow that.Joseph Stiglitz added.
Regulate crypto, not shutdown
Rather than outrightly banning cryptocurrencies, many countries are open to understanding how digital currencies work, and possible measures for regulating. Recently in South Korea, the authorities introduced new law guiding the local cryptocurrency market, and also ensuring exchanges are registered with AML policies to check against money laundering and illicit transactions.