Duke University proposes to ban cryptocurrencies

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The leadership of the Center for Global Financial Markets at Duke University Law School in North Carolina believes that digital currencies have no real value.

Center Director Lee Reinerssaid in an interview with Insider that he expects the popularity of cryptocurrencies to decline, since the vast majority of blockchains have no real practical use case.

Reiners bases his thesis on the fact thatThe current cryptocurrency crisis and the collapse of a number of large crypto projects completely refutes the idea that cryptocurrency can be a hedge against inflation. Despite the fact that crypto investors like Mike Novogratz or Bill Miller constantly repeat this.

According to a Duke University spokesman,The boom in the crypto industry was caused by the lax monetary policy of the US Federal Reserve during the pandemic, and not at all by the advantages of crypto assets over other investment instruments:

“Cryptocurrency is traded exclusively onsentiment, and although Fed interest rates were near zero, it functioned like any other risk asset. Just as the Fed began raising interest rates and inflation reared its ugly head, the cryptocurrency market began to sell off heavily, destroying the thesis of a safe investment in digital gold.”

Reiners rejects the idea that the blockchain technology underlying cryptocurrencies has any real value:

“Blockchain technology standards are not new.Bitcoin has been around since 2009, but we're still waiting for its killer use case. It’s worth asking yourself: if it hasn’t happened yet, maybe it will never happen?”

Reiners proposed a radical solution forregulation that goes one step further than the proposals of any industry regulator: ban cryptocurrencies. Cryptocurrencies encourage scammers and speculative investor behavior rather than providing any intrinsic value in themselves, a university spokesperson explains.

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Recently, US Securities and Exchange Commission Chairman Gary Gensler announced plans to create a unified set of regulations for the cryptocurrency industry.