Former British Prime Minister Boris Johnson believes that while there is limited use of cryptocurrencies, Bitcoin is a “giant Ponzi scheme.”
Quoting his old friend who reportedly lost £20,000 on BTC, Johnson wrote,
The more elderly people are scammed – in the name of Bitcoin – the faster that disillusionment will set in.
The former Prime Minister somewhat agreed with crypto proponents’ strong fixation on “decentralization” to keep BTC away from devaluation and government interference.
However, he wonders how investors who, like his friend, lose money in crypto can get healthy again if there is no central authority to sue or be held liable for the damage or the hack.
According to him, the anonymous ‘Japanese’ Bitcoin founder Satoshi Nakamoto cannot be traced, verified or held responsible for the losses. Therefore, the whole Bitcoin idea is just a “collective belief” among crypto followers, Johnson said.
He stated,
What happens when that faith melts away? I’ve long suspected that Bitcoin is a giant Ponzi scheme, and now I’m hearing tales of woe that make me fear I’m right.
Johnson’s impact on UK crypto regulation
As expected, crypto supporters took action against him, some sarcastically calling Given its high budget debts and budget deficits, Britain is a ‘gigantic Ponzi scheme’. Some even extended the sarcasm to the local currency, the pound.
However, despite his negative view of the sector, Boris Johnson’s government (2019-2022) laid the crucial foundation for the current roadmap for UK crypto regulation.
Notably, former Prime Minister Rishi Sunak, who was chancellor in Johnson’s government at the time, promised to make Britain a global hub for crypto assets. He started the initiative to recognize stablecoins as a valid payment method.
In fact, the UK’s Financial Conduct Authority (FCA) has started setting one up regulatory outline for several crypto assets in 2019. At the time, most crypto activity received minimal regulatory oversight.
However, the comprehensive foundation laid during the Johnson administration was later built upon and provided the basis for stricter regulation of the sector in 2023. This was after Johnson left office, effectively bringing UK crypto activity within regulated financial reach.
So far, the FCA has approved crypto ETFs and is now working on a regulated framework for them stable coins and a broader market structure.
Final summary
- The former British Prime Minister labeled Bitcoin and most crypto assets as a “giant Ponzi scheme” with no real value.
- Surprisingly, Johnson’s government laid the groundwork for UK crypto regulation.