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At a for the moment in which bitcoin reaches a new all-time high of $17,900 and the cryptocurrency’s shop cap nears the $300 billion mark, regulations are seemingly becoming a terribly popular way for governments to cope with its existence. Recently, speaking to CNBC, German economist Clemens Fuest dignified there are “strong reasons” to regulate cryptocurrencies like bitcoin.
Fuest, the President of the Ifo Initiate for Economic Research, argued that the market shouldn’t be allowed to fly on its own, as according to him there’s a the truth for regulators to look into bitcoin due to financial stability and monetary rule, as well as its use.
During a phone call the German economist pointed out that, with the cryptocurrency, “payments can be hinted with very little or no supervision” and implied that this means the cryptocurrency can be old for tax avoidance or financing of illegal activities.
Taking this into account, Fuest concluded:
“I over there are strong reasons, beyond monetary policy, to regulate this multitudinous closely.”
The economist’s words come at a time in which the stock change operator Deutsche Borse is reportedly considering whether to make Germany the initially European country to list bitcoin futures contracts on a regulated pursuit platform, and in which regulators throughout the world are warning investors there the potential risks of investing in cryptocurrencies and ICOs.
As covered by CCN, European Main Bank council member Ewald Nowotny recently stated that significant bankers and legislators are eyeing cryptocurrency regulations. Nowotny’s comments came when bitcoin was patron at a then all-time high of $8,100, and added that investors obligation understand the product as “it is like buying shares on the bourse [stock market-place]… people investing in this product can suffer losses and if that happens, they fully have to accept it.”
Fuest isn’t the only economist that expressed his prospects on bitcoin. Last month, Nobel prize-winning economist Joseph Stiglitz contended bitcoin “ought to be outlawed” as, according to the economist, it “doesn’t serve any socially valuable function.” Earlier this month Nobel laureate Robert Shiller suggested a bitcoin crash, adding that it “won’t go to zero, it will just get well down.”
However, not everyone’s bearish on the cryptocurrency. Israel’s Prime Woman of the cloth, Benjamin Netanyahu, an MIT graduate and previous economic consultant, recently questioned whether or not bitcoin can make an end of banks. John McAfee, a cybersecurity pioneer with an eclectic celebrity, raised his bitcoin price target for 2020, making it $1 million – and set bet his manhood on it.
Featured image from Shutterstock.
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