Overstock CEO: Modern Financial System is a Ponzi Scheme, Collapse Will Bring Global Crypto Adoption

Patrick Byrne, the CEO of Overstock, stated in a recent interview that the entire modern financial system is a “big Keynesian magic money tree ponzi scheme”.

The statements were made during an interview with crypto YouTuber Naomi Brockwell on Monday, October 7.

The CEO of the tech-driven online retailer, which was one of the first major retailers to accept bitcoin, also believes that the modern financial system will eventually collapse, ushering in the global adoption of cryptocurrencies:

“People turn to it where they collapse, like Venezuela or Cyprus or Syria, something like that. When people start getting into it is when their own financial systems collapse.”

When asked about the role of governments in regulating cryptocurrencies, Patrick admitted being a national security libertarian. He believes that know-your-customer (KYC) and anti-money laundering (AML) requirements are important tools to keep criminal activity from thriving on the crypto sphere:

“I guess I must confess, as revolutionary as I am – I’m what you could call a national security libertarian. So I worry about threats to our country. And that means that KYC and AML are not just things to be scoffed at.“

Patrick believes that it is possible to take blockchain to the point where it becomes completely anonymous. On the one hand he loves the idea of becoming truly free and anonymous, but on the other he acknowledges that there will be some bad actors that will take advantage of the situation to hurt others.

Patrick is of the opinion that there is a right balance between freedom and security but “the more the world gets digitized, the more there will be government surveillance.” He trusts that distributed ledger technology can remake society and hopes that authoritarian states are unable to exert control and own the technology. Specifically referring to China, he also expressed his concerns on the country’s plans to rank all its citizens based on a "social score" by 2020.

Patrick thinks that social barriers and stigma and the idea that Bitcoin is mainly used for illegal drug trades and money laundering, are what’s holding back crypto adoption. When asked if Bitcoin will become a worldwide currency or if it will always have specific use cases he replied:

“Now, whether Bitcoin is the one, whether Bitcoin has solved its speed problems or it’s another cryptocurrency, only time will tell.”

Bank of Japan Governor Announces Investigation into Digital Currencies

  • Japan's central bank has announced an investigation into the development of digital currencies.
  • Bank of Japan (BoJ) governor Haruhiko Kuroda says the country has no intention of launching a digital currency as of now.

Bank of Japan (BoJ) governor Haruhiko Kuroda has announced that the country’s central bank is conducting research into digital currencies. 

According to a report published Nov. 19 by Reuters, Japan’s central bank has taken interest in the development of a digital currency and is actively researching the technology. The news comes in the wake of China’s high-profile central bank currency, which is rumored to launch before the end of the year. 

While Kuroda said the central bank has no intention to issue a digital currency in the short-term, it is researching the technology for potential implementation in the future. 

Kuroda also warned against the launch of stablecoins without proper governance and risk management protocols in place. He told parliament on Tuesday, 

If stable coins backed by companies with a huge customer base are issued globally, that could have an impact on monetary policy and financial system stability.

Kuroda is the latest central bank governor to weigh in on digital currencies and stablecoins, following the global regulatory storm created by Facebook’s libra.  

Featured Image Credit: Photo via Pixabay.com