By CCN.com: Nobel-Prize winning economist Joseph Stiglitz believes that cryptocurrencies need to be shut down. Demonstrating precisely zero knowledge of the concept of peer-to-peer networks, he told CNBC that he “actually [thinks] we should shut down the cryptocurrencies.”
Transparency Good, Bitcoin Bad
Stiglitz claims he supports digital payment systems because they would help with regulation, 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.”
Lack of privacy and potential for improved surveillance are a sticking point among cryptocurrency enthusiasts. Plenty of people believe that privacy coins such as Monero and Zcash will eventually be the dominant mode, while privacy innovations in Bitcoin such as CoinJoin have seen a massive increase in usage.
Stiglitz was one of three people to earn the Nobel prize for economics in 2001. He, Michael Spence, and George Akerlof won the award “for their analysis of markets with asymmetric information.” The official reason given for his prize 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.”
His Nobel prize has nothing to do with digital payments or cryptography, but the opinion of a respected economist will be taken seriously by the likes of government regulators.