Bitcoin is not an Alternative Form of Money, Says Former Federal Reserve Chairman

The support and technology around Bitcoin are increasing more and more every day, citing its additional demand among the masses.

There are an increasing number of Bitcoin ATMs available for the public, and on the other hand, there are many companies who have started to accept Bitcoin and other cryptocurrencies as payment for their products.

However, recently, Meta announced that it would be using Bitcoin as the underlying currency after facing massive backlash from government organizations towards its stablecoin projects, Diem and Libra.

It seems that the US government is not ready to go easy on Meta despite the massive rebranding campaign. The former Fed Chair recently spoke out about the transition during an interview with CNBC.

Ex-Fed chair Ben Bernanke was speaking at an interview with journalist Andrew Ross Sorkin. Bernanke started by listing the benefits Bitcoin provided the people during the times when recession and inflation affected the economy badly.

However, he showed a firm stance toward the idea that Bitcoin cannot act as a legal tender inside the US and cannot give USD a run for its money.

While he did not refer directly to the new plans of Meta, he made it clear that Bitcoin and other cryptocurrencies are only successful as a rewarding investment options. He claimed that the developers introduced Bitcoin as an alternative to the fiat currencies.

However, the record shows that thus far, Bitcoin or any other cryptocurrencies have not been able to fit the narrative of legal tender successfully.

Bernanke Claims that People do not Wish to Buy Groceries with Bitcoin

During his interview, Bernanke claimed that most people would not wish to use their Bitcoin reserves to purchase groceries. He also clarified that Bitcoin’s main purpose is to support its investors with financial gains and operate as passive economic incentives.

He further claimed that Bitcoin should be used to facilitate illegal enterprises. He also claimed that the intrinsic nature of Bitcoin demands a massive amount of regulatory coverage.

On the other hand, Bitcoin proponents like Anthony Pompliano claim that Bernanke has a bias against Bitcoin and lacks factual evidence to back his claims.

Pompliano quoted the report of a former CIA acting director who conducted detailed research on blockchain-related transactions and claimed that only 4% of the blockchain resources accounted for illegal or illicit activities.

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