The value of cryptocurrencies soared in 2017 before slumping, with bitcoin losing nearly two-thirds of its value since mid-December. Photo: AFPWashington: The head of the World Bank compared cryptocurrencies to “Ponzi schemes,” the latest financial voice to raise questions about the legitimacy of digital currencies such as bitcoin. “In terms of using bitcoin or some of the cryptocurrencies, we are also looking at it, but I’m told the vast majority of cryptocurrencies are basically Ponzi schemes,” World Bank group president Jim Yong Kim said Wednesday at an event in Washington. The value of cryptocurrencies soared in 2017 before slumping, with bitcoin losing nearly two-thirds of its value since mid-December. Federal Reserve chair Jerome Powell has said that “governance and risk management will be critical” for cryptocurrencies.

Source: Mint February 07, 2018 22:52 UTC