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Greek Ex Finance Minister Yanis Varoufakis: “Bitcoin will Make Capitalism Uglier, Nastier and More Dangerous for Humanity.”

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In Greece, the former finance minister, Yanis Varoufakis, came forward and voiced his sentiments about the world’s leading cryptocurrency. By an open letter published on July 27, Yanis Varoufakis stated that Bitcoin’s substitution as fiat currency would not be a good idea, since the crypt would only make “capitalism uglier, nastier and more dangerous for humanity.”

Yanis Varoufakis served as Minister of Finance in the Greek Government for a period of five months from January to August 2015. Greece was in charge of the finance ministry and faced a massive financial crisis to the extent that it was unable to provide a €1.6 billion loan from the International Monetary Authority. Nevertheless, the ex-finance minister is now using his experience and knowledge to deliberate on whether bitcoin can replace cash.

Greek Ex-Finance Minister unconvinced by Bitcoin

Through the letter, Varoufakis argues that Bitcoin cannot adapt and react to the many economic problems, citing the novel coronavirus pandemic. He stated that Bitcoin’s monetary policy is programmed; hence it is difficult to alter.

Furthermore, Bitcoin’s scarce supply, which stands at 21 million, is unlikely to change soon anytime. The supply cap coded into BTC ensures that its supply is developed at a steady speed that is automatically slashed every four years by 50 percent. BTC is incapable of adding to its supply; however, experts claim it is an excellent mechanism to curb its supply and maintain value. 

Additionally, Yanis Varoufakis pointed out the uneven distribution of BTC as one of the reasons it should not substitute fiat. According to him, the majority who holds a lot of BTC is not impressed by the idea of adding to their holdings, since this will depreciate the value of their crypto asset. This proves to be a problem since the rich naturally tend to hold onto Bitcoin at the expense of public interest, creating an inadequate wealth distribution and more so during crises such as the COVID-19.

 Varoufakis backs blockchain technology

Although the ex-Greece finance minister believes that the adoption of Bitcoin will make the world worse, he believes that blockchain is an exceptional technology. The former finance minister highlighted while Bitcoin might not be the solution to capitalists, blockchain technology might play a very vital role in developing a new form of the financial system.

Binance’s Fiat Gateway Wing Banxa Secures Millions in its First Funding Round

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Binance crypto exchange’s fiat gateway partner Banxa to create the U.K.’s Faster Payment Scheme for transferring Pounds (GBP) following the successful completion of the funding round. The funding further aims to strengthen Euro (EUR) and the Australian Dollar (AUD).

Essentially, Banxa provides fiat gateway infrastructure for the cryptocurrency exchange. The firm successfully raised $2M in its 1st round of investment, led by NGC ventures, one of the top ten most active investors in the blockchain and crypto space, and Thorney Investment Group, an Australian company.

As per the company’s founder chairman, Domenic Carosa, the fresh funding will be utilized to build businesses with different payment gateways, try and add more local currencies and licenses for future benefits. Mr. Carosa further said that they are planning to expand their businesses in Europe, Africa, and Asia. More so, Banxa is intending to add new features for exchanges and wallets.

Reportedly, Banxa serves around 20 million users which also includes few notable crypto clients such as Binance and OKEx. Moreover, the firm is currently supporting 12 different fiat currencies and expecting to include additional currencies in the near future. He confirmed that there are nearly 50 new companies waiting to join Banxa.

Banxa
Credit: Banxa Facebook

The firm is run by 25 unique people divided into their offices in the Netherlands, Australia, and the Philippines. Notably, there were just 15 people working at the start of the year 2019.

How is Banxa positioned presently?

As per Roger Lim, the founder partner of NGC Ventures informed in one of his interviews with media;

“Banxa is well-positioned within the Crypto economy. It fundamentally supports the ever-evolving financial choices of the present contemporaries.” He also added that “Banxa provides the best user experience to the freshers by providing the necessary financial assurances that are required for their safety on this digital asset.”

The Banxa founder further confirmed that their firm will soon list its IPO onto the Toronto Stock Exchange and consequently, the pre-IPO session will be rolled out immediately.

“Banxa is in the process of launching an IPO on the Toronto Stock Exchange in Canada. We are soon going to launch the pre-IPO round.” – Domenic Carosa said.