World Bank chief compares cryptocurrencies to 'Ponzi schemes'

Cryptocurrencies prices have fallen in 2018

Tom Eckett
clock • 2 min read

Jim Yong Kim, head of the World Bank, has become the latest financial voice to question the legitimacy of cryptocurrencies such as Bitcoin by comparing them to "Ponzi schemes".

Kim noted the World Bank was "looking really carefully" at blockchain technology as there was a hope it could be used in developing countries to "follow the money more effectively" and reduce corruption, according to Bloomberg. "In terms of using Bitcoin or some of the cryptocurrencies, we are also looking at it, but I am told the vast majority of cryptocurrencies are basically Ponzi schemes," Kim said. "It is still not really clear how it is going to work." Bitcoin's meteoric rise last year has come to somewhat of a halt in 2018 with the cryptocurrency losing $44.2bn of its $200bn ma...

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