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Former Greek Finance Minister: Replacing Fiat with Bitcoin will Aggravate Financial Crisis
Summary: In an open letter published on Monday, former Greek finance minister Yanis Varoufakis said Bitcoin should not replace fiat money because of its unequal distribution and limited supply. Titled “Why Bitcoin is nor a socialist’s ally—reply to Ben Arc”, the open letter stated that Bitcoin “lacks the mechanism necessary to stop capitalist crises from yielding ...
In an open letter published on Monday, former Greek finance minister Yanis Varoufakis said Bitcoin should not replace fiat money because of its unequal distribution and limited supply.
Titled “Why Bitcoin is nor a socialist’s ally—reply to Ben Arc”, the open letter stated that Bitcoin “lacks the mechanism necessary to stop capitalist crises from yielding depressions that benefit only the ultra-right”. Because monetary policies based on Bitcoin are hardcoded, he stated, it would be hard for the government to monitor and adjust money capacity in financial crises.
In addition, Varoufakis believes the “community-based, democratic protocol” of bitcoin will not democratize economic life. He added that even if Bitcoin becomes the new fiat, private banks and firms will not change much.
However, the former minister acknowledged the potentiality in blockchain technology itself.
By Lily Yang
Tags: Bitcoin,BTC,Regulation
Link: Former Greek Finance Minister: Replacing Fiat with Bitcoin will Aggravate Financial Crisis [Copy]
