The former chief economist of the World Bank says bitcoin should go away.

“Bitcoin is successful only because of its potential for circumvention, lack of oversight,” Joseph Stigliz said in an interview on Bloomberg Television. Bitcoin is currently trading around $10,000.

“It seems to me it ought to be outlawed. It doesn’t serve any socially useful function,” he said. Predicatably he wants digital money but not with a bitcoin style arrangement.

Digital money should be controlled by government.  “Let’s move away from paper into the 21st century of a digital economy,” he said.

He believes bitcoin is a bubble that is going to burst. It will offer exciting times on the way up and then on the way back down. He believes Washington could stop it any time … and that sooner or later would probably try.

Stiglitz may be correct about Washington’s stance. But not for the reasons he cites. If Washington tries to shut down bitcoin and other cybercurrencies, it will be because the government doesn’t want challenges to the Federal Reserve.

The Fed fixes the value and volume of money and price fixing never works. All around the world, central banks set interest rates and define monetary mass so it is not just the Fed. Hundreds of central banks remove the free market functions from money and operate by decree.

For thousands of years, money was entirely private and not influenced by what people said  about it. People could not influence its value or volume and it was only in the 1500s that money started to come under control of a very few people when the first British central bank was set up.

That bank’s primary function was to provide money for British wars that were directed by the King himself. In return, the King gave the bankers and jewelers a monopoly on currency. The British model now extends around the world.

There are only a handful of countries without a central bank and many of these are under attack. Money will have to return to the free market in order to function effectively once more. In the meantime we will have constant bubbles and crashes because money is directed rather than free flowing.

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How? All these: “central banks will kill crypto/blockchain” type of comments. It’s easy to type this sentiment out, but HOW? to end crypto?? Not so easy after you consider that it’s online, living and breathing for all to study and make it stronger and better. Remember Napster…? Sure it was eventually shut down but a hundred Napster inspired sites sprang to life offering searches for free music, tv, movies, computer programs, video games, etc. Good luck banksters! You’re going to need it.

It is more likely that central banks will collapse over time than cryptocurrencies. That because central banking doesn’t work in the long term. It collapses and needs to be reconfigured before it collapses again. It is much more likely in the long-term that some form of cryptocurrency will continue and expand.

Central banking is an abomination that impoverishes every nation where it is tried. Sooner or later money will be free again, just as most cybercurrencies are free.


Many people involved in ICOs are finding places with low taxes that are welcoming to them. They have gone to places like Switzerland, parts of Europe and the Caribbean. Regulators are not reaching equally into all corners of the world.

In fact, regulators’ push to reduce coin purchases may end up increasing use in these alternative regions. The US has done a number of ICOs this year but it is not necessarily an easy sell. And many major jurisdictions consider ICOs as basically risky propositions

The entire European Union is basically operating with a strict stance.  The SEC has already stated that ICOs should be regulated like securities. Selling utility tokens is a good idea, but SEC rules may evolve in such a way that even tokens will receive a good deal more scrutiny.

US issuers ought to think about selling overseas.  The Seychelles is one place that people can consider. But there are others. Meanwhile digital coins have sold some 3.6 billion so far this year, up from $100 million last year.

And many millions can be raised fairly issue quickly which is something regulators are concerned about. Generally speaking government regulators from first world counties put securities ahead of cryptocurrencies. And in fact they would to some degree rather that cryptocurrencies were something they didn’t have to deal with at all.

If they can reduce cryptocurrency exposure they may do it. But cryptocurrencies will continue to grow faster and faster until regulation finally catches up to them. This is not going to happen any time soon. Cryptocurrencies will continue to be offered in out-of-the-way places and circulate worldwide.

Regulators in first-world counties may do less issuance but smaller countries will continue and expand volume. This continues to take place no matter what countries like America do.