China’s BSN chair calls Bitcoin Ponzi, stablecoins ‘fine if regulated’

Amid the Chinese federal government continuing to commemorate the enormous decrease of cryptocurrency markets this year, one crucial regional blockchain specialist has actually described crypto as a “Ponzi scheme.”

Yifan He, CEO of Red Date Technology, a significant tech company associated with the advancement of China’s significant blockchain job, the Blockchain Service Network (BSN), has actually penned a brand-new short article dedicated to numerous type of cryptocurrencies and their expected Ponzi-like nature.

Published in the regional paper The People’s Daily on June 26, the piece describes personal cryptocurrencies as the “biggest Ponzi scheme in human history.”

The author discussed the Terra network’s collapse, with the native token LUNA crashing 99% and the algorithmic UST stablecoin losing its 1:1 peg worth to the U.S. dollar in May 2022. He likewise slammed the progressively popular virtual currency idea referred to as X-to-earn, describing move-to-earn or play-to-earn tasks, calling the design a “phishing strategy.”

The BSN chair likewise discussed some widely known criticism of Bitcoin (BTC) by Microsoft creator Bill Gates and famous financier Warren Buffett.

He is not a fan of Bitcoin or any comparable cryptocurrencies himself too. “Currently all unregulated cryptocurrencies including Bitcoin are Ponzi schemes based on my understanding, just different risk levels based on the market caps and number of users,” He stated in a declaration to Cointelegraph on Monday.

The BSN chair included that he had actually not had any cryptocurrency wallet or associated properties ever: “I don’t touch them and won’t touch them in the future even if they become regulated because I don’t consider that they have any value whatsoever.”

According to He, federal governments like El Salvador — which chose to embrace BTC as legal tender — “seriously need basic financing training.” “Otherwise, they put entire countries at risk unless their original intentions were to build state-owned crypto trading platforms and scam off on their citizens,” the officer informed Cointelegraph.

While slamming Bitcoin and lots of other crypto tasks, He still thinks that some part of the crypto market might be doing simply great if it’s appropriately controlled. Cash-backed stablecoins like Tether (USDT) and Circle’s USD Coin (USDC) must not be considered as Ponzi-like plans, the BSN chair stated, specifying:

“USDC or USDT are payment-related currencies, not speculative assets. Once they are fully regulated, they are fine.”

He formerly talked in favor of stablecoins in 2020. The executive as soon as prepared to incorporate stablecoin payments into BSN since 2021. The strategy was ultimately ditched due to China’s hostility to crypto.

Related: China cautions Bitcoin is heading to no however BoE searches the intense side

The news comes in the middle of the Chinese federal government profiting from the continuous crypto market crash to validate its several restrictions on the market. The newest collaborated restriction was enacted in September 2021, with several Chinese authorities acting to forbid all type of crypto deals in the nation.

Despite all efforts, China continued to be a dominant Bitcoin mining provider worldwide. According to information from the Cambridge Bitcoin Electricity Consumption Index, China was the 2nd biggest BTC mining hash rate manufacturer after the United States since January 2022.