Brazil Central Bank Chief Compares Bitcoin to Pyramid Scheme

The head of Brazil’s financial institution took a harsh stance toward bitcoin earlier on, comparison the cryptocurrency to a scheme.

According to RttNews, financial institution president Ilan Goldfajn was dismissive of recent worth appreciationwithin the bitcoin market.

And whereas he same it absolutely was key to “separate” bitcoin from alternative applications of its underlying technology, Goldfajn same that those shopping for cryptocurrencies area unit chasing an equivalent reasonablyreturns as those that invest in pyramid scams. in an exceedingly scheme, organizers solicit investors United Nations agency area unit then spurred to seek out new consumers themselves, thereby making a revenue stream supported new investments instead of the underlying product itself.

He was quoted as saying:

“THE BITCOIN may be a money quality WITH NO BALLAST that folks get as a result of THEY BELIEVE it'llAPPRECIATE. that's A TYPICAL BUBBLE OR PYRAMID [SCHEME].”

The president continued by confirming that the Banco Central do Brazil “is not curious about bubbles or illicit payments” which such activities area unit “not one thing the financial institution would love to encourage.”

The stance is notable as long as legislators in Brazil area unit presently functioning on rules for cryptocurrency activity within the country. whether or not Goldfajn’s comments have a bearing on it method remains to be seen.

The Banco Central do Brazil issued a notice in 2014 regarding the risks of investment in cryptocurrencies, latercommercial enterprise a search note on blockchain use cases in September.