Central Bank of Estonia Suggests Bitcoin is a Ponzi Scheme

Central Bank of Estonia Suggests Bitcoin is a Ponzi Scheme

Estonia's Central Bank is warning citizens to be wary about getting involved with bitcoin, according to a report from Bloomberg, insinuating it could prove to be little more than Ponzi scheme. The emerging digital currency "is a problematic scheme," according to Mihkel Nommela, who heads the central bank's payment and settlement systems. "All risks are assumed by the user, who has no one to turn to for help." The call for caution comes amidst a slew statements from central banks around the world echoing similar sentiments, such as the currency's volatility, susceptibility to theft, and....


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Estonian Central Bank Warns Bitcoin May be a 'Ponzi Scheme'

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Estonian central bank: Bitcoin could just be a Ponzi scheme

A representative from the Estonian central bank referred to Bitcoin this week as “a problematic scheme” and warned Estonians about getting involved with the currency. Mihkel Nommela, head of the central bank’s payment and settlement systems department, is worried that users assume all of the risks when using Bitcoin. “All in all, virtual currency schemes are an innovation that deserves some caution, given the lack of any guarantees and responsible parties to back them in the longer term or evidence that this isn’t just a Ponzi scheme,” he told Bloomberg. Banks in the region such as SEB and....

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