Nobel Prize-winning economist: Authorities to bring down sledgehammer to Bitcoin

Joseph Stiglitz, former chief economist at the World Bank, warned the crypto money community that central banks are not going to beat Bitcoin and other leading digital money because the market is still relatively small.

Speaking to Financial News, Professor of Columbia University, when the money becomes more important they will use the sledgehammer. They will act to regulate anonymous transactions.

In parallel with Stiglitz's words, the US Securities and Exchange Commission (SEC) began examining the market, while regulators around the world created policies dealing with crypto money exchanges.

Stiglitz, Bitcoin and others said that the real problem with decentralized cryptographic money arises from the conflict between anonymity for users and the transparency required for a banking system. Nobel prize-winning professor, in his remarks, "You can not have a confidentiality payment method while trying to create a transparent banking system.

'Bitcoin is due to abuse'

Stiglitz told Bloomberg in June that "if you are regulating Bitcoin, you will not be able to do anything about it. If you open a hole like Bitcoin, then all the terrible activities will pass through that hole, and governments will not tolerate it. money laundering and all other crimes will be avoided so that the demand for Bitcoin will come to an end.

Some financial institutions do not agree with Stiglitz

On the other hand, some financial institutions do not seem to agree with Stiglitz. In May, Goldman Sachs announced plans to open a Bitcoin trade operation that other banks could follow. In June, Silicon Valley's leading venture capital company Andreessen Horowitz announced that it would open a fund dedicated to cryptographic currencies. The world's largest stock exchange – NYSE's parent company, ICE, is developing a crypto money market. And Barclays, a UK-based bank, signed an agreement in March to support Coinbase, one of the world's largest crypto money exchanges.