The prominent economist Joseph Stiglitz once again collapsed with sharp criticism on bitcoin and other cryptocurrencies. He called bitcoin a tool for illegal financial activities.

The former head of the World Bank and Nobel Prize winner Joseph Stiglitz, commenting on the collapse of traditional stocks on world exchanges due to the new round of trade war between the US and China, suddenly turned his speech to cryptocurrencies. According to Stiglitz, cryptocurrency needs to be shut down.

“I actually think we should shut down the cryptocurrencies.”

“It disturbed me a great deal – the attention that was given to cryptocurrencies,” he said in an interview with CNBC.

Stiglitz did not specify when public attention to cryptocurrency began to worry him, noting only that cryptocurrency contributes to money laundering.

“We know the role of real estate and money laundering, we know from the Paradise Papers and the Panama Papers the extent of this money laundering.”

Explaining his ideas on how to strengthen the global economy, Stiglitz supposed that it could be done with the help of a complete transfer of economic relations into electronic form. This would make it possible to increase the efficiency of the existing system and eradicate illegal financial activities.

“We know from recent studies that a large percentage of world wealth is contained in such dark havens,” Stiglitz said, speaking about cryptocurrencies.

According to Stiglitz, the US dollar is better than bitcoin.

“We have a very good currency so far; the currency’s been run in a very stable way, there’s no need for anyone go to a cryptocurrency,” he added.

Earlier, Warren Buffett called bitcoin a tool for gambling and criminal activity. Buffett urged investors not to consider cryptocurrency as an investment asset.

 “It’s a gambling device... there’s been a lot of frauds connected with it. There’s been disappearances, so there’s a lot lost on it. Bitcoin hasn’t produced anything,” said Warren Buffet on the eve of the annual meeting of Berkshire Hathaway in Omaha. At the same time, he said that the blockchain technology has potential, “but it didn’t need bitcoin”.