The battle of effective currencies

According to reports, a renowned Nobel Prize-winner economist, Joseph Stiglitz has gone against cryptocurrencies claiming that they should be shut down.

He mentioned that Cryptocurrencies can be used for illegal activities and makes the process of transactions untraceable and for these reasons, he thinks that they should be shut down.

However, he is in support of the use of Blockchain electronic payment systems, focused around private blockchain and similar to what the banks are offering. He does not think that cryptocurrencies like Bitcoin or any other cryptocurrency represent a better payment method for a global economy.

Joseph later mentioned that:

“I’ve been a great advocate of moving to an electronic payments mechanism. There are a lot of efficiencies. I think we can actually have a better-regulated economy if we had all the data in real time, knowing what people are spending.”

This could put the global economy in a very strenuous position as the shutting down of cryptocurrencies would stifle economic growth and the freedom to trade in the economy.

Also, the shutting down of cryptocurrencies would see a strike back as this leaves the monetary policies unfit and weakened to continue as it is.

Cryptocurrencies have seen their fair share of non-support from the likes of Charlie Munger and Warren Buffet. This has, however, not stopped the growing economy of cryptocurrencies globally.

Nevertheless, some other economists see Bitcoin and other cryptocurrencies as a good sign of economic prosperity and predict a healthy road ahead for the growing industry as Decentralisation is the future.

What do you think of the possibility of cryptocurrencies going directly against fiat currencies? Please feel free to leave a comment down below.

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