China’s BSN chairperson express his dilike by calling Bitcoin Ponzi, stablecoins ‘fine if regulated’
China’s BSN chairperson told Cointelegraph, Stablecoins like USDT and USDC would be doing just fine if properly planned, while he called Bitcoin a “Ponzi scheme” in any case.
Within the Chinese government continuing to celebrate the huge failure of cryptocurrency markets this year, one key local blockchain expert has referred to crypto as a “Ponzi scheme.”
Yifan He, CEO of Red Date Technology, a major tech firm involved in the development of China’s major blockchain project, the Blockchain Service Network (BSN), has penned a new article dedicated to many kinds of cryptocurrencies and their supposed Ponzi-like nature.
Issued on June 26, in the local newspaper The People’s Daily, the piece refers to private cryptocurrencies as the “biggest Ponzi scheme in human history.”
The author stated the Terra network’s downfall, with the native token LUNA crashing 99% and the algorithmic UST stablecoin losing its 1:1 peg value to the U.S. dollar in May 2022. He also complained about the increasingly popular virtual currency concept known as X-to-earn, mentioning move-to-earn or play-to-earn projects, calling the model a “phishing strategy.”
The BSN chairperson also revealed some well-known criticism of Bitcoin (BTC) by Microsoft founder Bill Gates and legendary investor Warren Buffett.
Stated that he is not a fan of Bitcoin or any similar cryptocurrencies himself as well, he said in a statement to Cointelegraph on Monday, “Currently all unregulated cryptocurrencies including Bitcoin are Ponzi schemes based on my understanding, just different risk levels based on the market caps and the number of users.”
The BSN chairperson claimed that he had not had any cryptocurrency wallet or associated assets ever: “I don’t touch them and won’t touch them in the future even if they become regulated because I don’t consider that they have any value whatsoever.”
He thought governments like El Salvador — which chose to adopt BTC as legal tender — “seriously need basic financing training.” “Otherwise, they put entire countries at risk unless their original intentions were to build state-owned crypto trading platforms and scam off on their citizens,” the executive told Cointelegraph.
Although criticizing Bitcoin and many other crypto projects, He believes that some part of the crypto market could be doing just fine if it’s properly planned. Cash-backed stablecoins like Tether (USDT) and Circle’s USD Coin (USDC) should not be viewed as Ponzi-like schemes, the BSN chair said, stating:
“USDC or USDT are payment-related currencies, not speculative assets. Once they are fully regulated, they are fine.”
Previously in 2020 He talked in favor of stablecoins. The executive once planned to mix stablecoin payments into BSN as of 2021. The plan was eventually tussled due to China’s hostility to crypto.
The news comes amid the Chinese government capitalizing on the ongoing crypto market crash to defend its multiple bans on the industry. The latest coordinated ban was enacted in September 2021, with multiple Chinese authorities taking action to prohibit all kinds of crypto transactions in the country.
In spite of all efforts, China continued to be a leading Bitcoin mining trader worldwide. According to data from the Cambridge Bitcoin Electricity Consumption Index, China was the second-largest after the United States as of January 2022.
