Jim Yong Kim, World Bank president, says cryptocurrencies are like Ponzi schemes
Kim joined other experts who have warned against investing in the new business with growing interests around the world.
In recent times, Bitcoin a type cryptocurrency has become one of the most popular across the world.
Jim Yong Kim, quoted by Bloomberg said “In terms of using Bitcoin or some of the cryptocurrencies, we are also looking at it, but I’m told the vast majority of cryptocurrencies are basically Ponzi schemes. It’s still not really clear how it’s going to work.”
He said he is “looking really carefully” at blockchain technology, a platform that allows secured trading of digital assets.
The World Bank president also said that there is hope that technology can help developing countries “follow the money effectively and reduce corruption”.
There have been concerns about the volatility of cryptocurrency and its criminal potential.