Former British Prime Minister Boris Johnson believes that Bitcoin is a ‘giant pyramid scheme’, despite the limited use of cryptocurrencies.
Johnson was referring to his former friend who reportedly lost £20,000 in BTC. wrote,
The more elderly people are defrauded in the name of Bitcoin, the faster this disappointment will occur.
The former Prime Minister was somewhat in agreement with crypto supporters’ strong commitment to ‘decentralization’ to keep BTC away from government devaluation and interference.
However, he wonders how investors like his friend who lost money in crypto can be reunited if there is no central authority to sue or hold them accountable for damage or hacking.
According to him, anonymous ‘Japanese’ Bitcoin founder Satoshi Nakamoto cannot be traced, verified or held responsible for losses. So, according to Johnson, the idea of Bitcoin is just a ‘collective belief’ among crypto supporters.
HE posed,
What happens when this belief melts away? I have long suspected that Bitcoin is a massive Ponzi scheme, and now I’m hearing painful stories that make me fear I’m right.
Johnson’s impact on UK crypto regulation
As expected, crypto supporters united against him, some cynically. to call ‘A giant pyramid scheme’ considering the UK’s high financial debt and deficits. Some even extended the sarcasm to the local currency, the Pound.
Despite its negative view of the industry, Boris Johnson’s administration (2019-2022) laid the important foundation for the UK’s current crypto regulatory roadmap.
Former Prime Minister Rishi Sunak, who was Chancellor under Johnson at the time, promised to make the UK a global crypto asset hub. It launched an effort to recognize stablecoins as a valid payment method.
In fact, the UK’s Financial Conduct Authority (FCA) is a regulatory environment for different crypto assets in 2019. At the time, most crypto activities faced minimal regulatory scrutiny.
However, the comprehensive foundation established during the Johnson administration was later built upon, enabling stronger regulation of the sector in 2023. This was after Johnson left office and effectively brought the UK’s crypto activity into regulated financial purview.
The FCA has so far approved crypto ETFs and is currently working on a regulated framework. stablecoins and a broader market structure.
Final Summary
- The former British Prime Minister has labeled Bitcoin and most crypto assets a ‘giant pyramid scheme’ with no real value.
- Surprisingly, the Johnson administration laid the groundwork for the UK’s crypto regulations.
