- European Central Bank policymaker Ardo Hansson has voiced his lack of belief in Cryptocurrency
- According to him, it is ‘a complete load of nonsense’ and a ‘fairytale’
One of the reasons for the success of cryptocurrencies is the sheer number of people who believe in its value and its potential. At the same time, there are many who do not see the point in cryptocurrency, one of them being European Central Bank policymaker Ardo Hansson. He recently branded cryptocurrency a ‘complete load of nonsense’ and a fairytale.
According to Hansson, Cryptocurrency has had its run and the momentary success it has enjoyed will soon come to an end. This was said during a recent conference in Latvia:
“The bubble has already started to collapse and maybe we should just see how far this collapse goes, and what is left when we’ve reached a new kind of equilibrium. I think we will come back a few years from now and say how could we ever have gotten into this situation where we believed this kind of a fairy-tale story.”
This level of criticism towards cryptocurrency from a high ranking official isn’t anything new. Late last year, European Central Bank Board member Benoit Coeure referred to bitcoin as an evil spawn of the financial crisis:
“Few remember that Satoshi embedded the genesis block with a Times headline from January 2009 about U.K. banks’ bailout. In more ways than one, Bitcoin is the evil spawn of the financial crisis.”
Long road ahead for crypto
Hansson doubled down on his comments and urged governments to pay particular attention to investor protection.
His argument is that cryptocurrencies can be used for illegal activities and that if there is greater overlap between cryptocurrencies and the mainstream financial sector, there might be issues of financial stability.
The Estonian financial watchdog has voiced somewhat similar sentiments as service providers in the cryptocurrency industry have been tagged a money laundering risk.
At the same time, in the last year over 500 licenses have been issued to cryptocurrency exchanges and over 440 to businesses offering wallet services.