The member of the board of the European Central Bank called the first cryptocurrency a malicious outcome of the 2008 global financial crisis and warned world central banks of the dangers and risks of digital currencies.

Digital hell fiend

ECB board member Benoit Cœuré believes that bitcoin was born due to the global financial crisis of 2008-2009.

“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,” said Cœuré.

Speaking at the ninth conference of Economics of Payments, Coeure, who also chairs the Committee on Payment and Market Infrastructures at the Bank for International Settlements (BIS), recognized certain advantages of cryptocurrencies. However, he admitted that bitcoin was a clever idea, but the underlying blockchain technology seems to him to be a much more successful concept.

“Sadly, not every clever idea is a good idea. The opportunities of the blockchain are many, but the problems of bitcoin are also plentiful. I believe that Agustín Carstens summed its manifold problems up well when he said that bitcoin is ‘a combination of a bubble, a Ponzi scheme and an environmental disaster.”

Earlier, Agustín Carstens, CEO of the Bank for International Settlements, called bitcoin “a bubble, Ponzi scheme and an environmental disaster.”

IMF stands for digital currencies

Earlier, the head of the International Monetary Fund advised central banks to think about issuing their own digital currencies in order to reduce the share of cash use.

Lagarde drew attention to the fact that recently the number of cashless payments increased dramatically, and the current financial system is struggling to handle them.

“The advantage is clear. Your payment would be immediate, safe, cheap, and potentially semi-anonymous. As you wanted. And central banks would retain a sure footing in payments,” she said.