The Reasons Why Bitcoin should Be Regulated: German Economist Vision
As the price of Bitcoin continues it’s rally, reaching a new high of $18,000, with market capital nearly $300 billion, it appears that regulations are becoming more popular for governments to take control on them. A German economist Clemens Fuest recently stated about existing some “strong reasons” for regulating virtual money like bitcoin.
He argued that the market shouldn’t be allowed to fly on its own, because he thinks there’s a case for regulators to look into bitcoin due to financial stability and monetary policy, as well as its use.
German economist pointed out that payments with digital currencies can be made with very little or no control. It will cause the asset to be used for tax avoidance or financing of illegal activities.
“I think there are strong reasons, beyond monetary policy, to regulate this more closely.”
The economist’s words come at a time in which the stock exchange operator Deutsche Borse is reportedly considering whether to make Germany the first European country to list bitcoin futures contracts on a regulated trading platform, and in which regulators throughout the world are warning investors about the potential risks of investing in cryptocurrencies and ICOs.
There are other economists, who shared their views on bitcoin too. Among them is Nobel prize-winning economist Joseph Stiglitz, who claimed last month, that bitcoin should be outlawed, as it doesn’t serve any socially useful function. Earlier this month, Nobel laureate Robert Shiller predicted a bitcoin crash. He added, that it won’t go to zero but will just come down.
However, there are many famed people, who have positive thoughts about cryptocurrencies. Israel’s Prime Minister, Benjamin Netanyahu, an MIT graduate and previous economic consultant, recently questioned whether or not bitcoin can destroy banks. A cybersecurity pioneer John McAfee raised his price target up to $1 million until 2020. He even bet his manhood on it.