Nobel Prize winner economist Joseph Stiglitz, expressed his opinion on cryptocurrency saying that they shut be shut down. While speaking for an interview, he explained his views so we are about to find out more about them in the latest cryptocurrency news.
Stiglitz showed no knowledge of the peer-to-peer network and how it works but still believes that cryptocurrencies should be shut down. He claims, however, to be supportive of the digital payments system because they would help with the legislation and regulation by saying:
“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.”
The award-winning economist was one of the first to receive the Nobel Prize for economics in 2001 along with Michael Spence and George Akerlof. They won the price for their ‘’analysis of markets with asymmetric information.’’ The official explanation of why the award was given to them reads:
“Joseph Stiglitz clarified [a] type of market adjustment, where poorly informed agents extract information from the better informed, such as the screening performed by insurance companies dividing customers into risk classes by offering a menu of contracts where higher deductibles can be exchanged for significantly lower premiums. In a number of contributions about different markets, Stiglitz has shown that asymmetric information can provide the key to understanding many observed market phenomena, including unemployment and credit rationing.”
Despite receiving the award, the Nobel prize winner has nothing to do with crypto or digital payments. He has stated previously as well that governments should shut down bitcoin. However, it is almost impossible to shut down crypto by force and it could potentially lead to an open black market.
As per the altcoin news, the economist argued that blockchain economies are transparent but governments should be more involved in order to have more accurate interest rates. He also says that by getting the government involved, we would have the ability to get rid of ‘’illicit’’ transactions. On his closing words for the interview, he added:
“We have a very good currency. We talk about the attributes of a good currency and the US dollar has all those attributes. The cryptocurrencies do not have those attributes. I actually think we should shut down the cryptocurrency.”
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