Boris Johnson slams Bitcoin as ‘Ponzi scheme,’ triggers community backlash

Former British Prime Minister Boris Johnson believes that whereas there’s a restricted use case for cryptocurrencies, Bitcoin is a ‘large Ponzi scheme.’ 

Citing his previous pal who reportedly misplaced £20,000 on BTC, Johnson wrote, 

The extra aged individuals get ripped off – within the title of Bitcoin – the quicker that disillusion will set in.

The previous PM considerably agreed with crypto supporters’ robust fixation on ‘decentralization’ to maintain BTC away from authorities devaluation and interference. 

Nevertheless, he wonders how buyers who lose cash in crypto, like his pal, will be made entire once more if there isn’t any central authority to sue or maintain accountable for the harm or hack. 

For him, the nameless ‘Japanese’ Bitcoin founder Satoshi Nakamoto can’t be traced, verified, or held answerable for the losses. Therefore, the entire Bitcoin concept is merely a ‘collective perception’ amongst crypto supporters, in line with Johnson.

He posed, 

What occurs when that perception melts away? I’ve lengthy suspected Bitcoin is a huge Ponzi scheme, and now I’m listening to tales of woe that make me worry I’m proper.

Johnson’s influence on U.Okay crypto regulation

As anticipated, crypto supporters ganged up towards him, with some sarcastically calling the U.Okay a ‘large Ponzi scheme’ given its excessive fiscal debt and deficits. Some even prolonged the sarcasm to the native foreign money, the Pound. 

Regardless of his adverse view of the sector, nevertheless, the Boris Johnson administration (2019-2022) laid the essential groundwork for the U.Okay’s present crypto regulatory roadmap.

Notably, former Prime Minister Rishi Sunak, who was Chancellor in Johnson’s administration on the time, pledged to make the U.Okay a world crypto asset hub. He initiated the push to acknowledge stablecoins as a sound cost methodology. 

In reality, the U.Okay’s Monetary Conduct Authority (FCA) started crafting a regulatory perimeter for various crypto belongings in 2019. On the time, most crypto exercise obtained minimal regulatory scrutiny. 

Nevertheless, the excellent basis set throughout the Johnson administration was later constructed on and knowledgeable the stronger regulation of the sector in 2023. This was after Johnson left workplace, successfully bringing the U.Okay’s crypto exercise throughout the regulated monetary purview. 

Up to now, the FCA has authorized crypto ETFs and is now engaged on a regulated framework for stablecoins and a broader market construction. 

Closing Abstract 

• Former British PM labelled Bitcoin and most crypto belongings as a ‘large Ponzi scheme’ with no actual worth. 
• Surprisingly, Johnson’s administration laid the inspiration for the U.Okay’s crypto laws.