BREAKING NEWS Off-duty Boswell Town Marshal dies in single-vehicle crash Full Story
SEVERE WX : Flood Warning View Alerts
STREAMING NOW: Watch Now

Davos: Bitcoin is not a currency

Davos is clear on bitcoin: It's an interesting investment, but please don't call it a currency.Bitcoin's volat...

Posted: Jan 26, 2018 3:10 PM
Updated: Jan 26, 2018 3:11 PM

Davos is clear on bitcoin: It's an interesting investment, but please don't call it a currency.

Bitcoin's volatile ascent has transformed it from a tech industry curiosity to a major topic of discussion at this year's World Economic Forum.

Yet the consensus in Davos, Switzerland, is that bitcoin will never be as useful as the dollar or yen in the real world.

"The central banks have been nurturing the [financial] system for centuries... we've got a good thing going on," Nobel laureate Robert Shiller said at a debate about the cryptocurrency.

Cecilia Skingsley, deputy governor of Sweden's central bank, said she had "no problem with people using [bitcoin] as an asset to invest in."

"But it's too volatile to be used as currency," she added.

Bitcoin prices, which peaked near $20,000 in December, have fallen sharply to under $11,000 after a series of exchange closures and talk of increased regulation raised concerns over the digital currency's future.

Davos 2018: Complete coverage

Even Davos attendees who have invested in bitcoin said its utility as a currency is limited. Jennifer Zhu Scott, an entrepreneur and cryptocurrency investor, described it as a "store of value."

"I don't think it's a currency, it's disrupting gold," she said. "A cryptocurrency can do what gold is doing much better."

The comments reflect growing anxiety over the real world applications for bitcoin, which is accepted at a smattering of retailers but has failed to find widespread acceptance.

Related: Steven Mnuchin is the British pound's new best friend

Leading online payments company Stripe said this week that it will stop processing bitcoin transactions in April. It said the huge volatility in bitcoin prices has made it impractical for making and receiving payments.

Top government officials in Davos also signaled that digital currencies have a long way to go.

"We encourage fintech, we encourage innovation, but we want to make sure that all of our financial markets are safe and aren't being used for illicit activities," said U.S. Treasury Sec. Steven Mnuchin.

British Prime Minister Theresa May echoed that sentiment, telling Bloomberg that her government would look "very seriously" at cryptocurrencies "because of the way they are used, particularly by criminals."

Larry Fink, chief executive of BlackRock, offered the most damning assessment, likening bitcoin to an "index of money laundering."

Lafayette
Cloudy
57° wxIcon
Hi: 62° Lo: 41°
Feels Like: 57°
Kokomo
Cloudy
56° wxIcon
Hi: 62° Lo: 39°
Feels Like: 56°
Rensselaer
Mostly Cloudy
46° wxIcon
Hi: 57° Lo: 36°
Feels Like: 40°
Lafayette
Cloudy
56° wxIcon
Hi: 57° Lo: 40°
Feels Like: 56°
Danville
Cloudy
54° wxIcon
Hi: 59° Lo: 41°
Feels Like: 54°
Frankfort
Cloudy
55° wxIcon
Hi: 60° Lo: 43°
Feels Like: 55°
Frankfort
Cloudy
55° wxIcon
Hi: 61° Lo: 41°
Feels Like: 55°
Monticello
Cloudy
52° wxIcon
Hi: 61° Lo: 40°
Feels Like: 52°
Monticello
Cloudy
52° wxIcon
Hi: 63° Lo: 39°
Feels Like: 52°
Logansport
Cloudy
55° wxIcon
Hi: 61° Lo: 37°
Feels Like: 55°
March coming in like a lamb Monday...
WLFI Radar
WLFI Temps
WLFI Planner

WLFI is promoting fire safety with FREE smoke detectors

 WLFI and several local fire departments are helping with your fire safety this winter. CLICK HERE. 

Indiana Coronavirus Cases

Data is updated nightly.

Cases: 660942

Reported Deaths: 12556
CountyCasesDeaths
Marion905601638
Lake48352874
Allen35762635
Hamilton32026396
St. Joseph29865511
Elkhart25350414
Vanderburgh21225377
Tippecanoe19977200
Johnson16319356
Porter15938269
Hendricks15801300
Clark11928180
Madison11730316
Vigo11578229
Monroe10312161
Delaware9830179
LaPorte9755196
Howard9047196
Kosciusko8549109
Bartholomew7440147
Warrick7403150
Hancock7394130
Floyd7189169
Wayne6630191
Grant6422157
Morgan6075125
Boone607288
Dubois5895111
Dearborn546866
Cass543399
Henry541793
Marshall5417104
Noble508578
Jackson464366
Shelby460190
Lawrence4179111
Gibson400881
Harrison398763
Clinton395053
Montgomery386283
DeKalb384678
Miami356763
Knox356485
Whitley348936
Huntington342376
Steuben337855
Wabash330876
Putnam329459
Ripley326861
Adams322549
Jasper315443
White297252
Jefferson294473
Daviess285396
Fayette271456
Decatur270488
Greene261280
Posey260531
Wells257674
Scott249950
Clay240844
LaGrange240770
Randolph225576
Spencer217030
Jennings214744
Washington210427
Sullivan203139
Fountain201142
Starke187951
Owen181953
Fulton178237
Jay177628
Carroll176418
Perry173235
Orange171150
Rush164322
Vermillion160242
Franklin159335
Tipton146141
Parke138815
Pike127432
Blackford120627
Pulaski106444
Newton96531
Brown94939
Benton91813
Crawford90313
Martin80014
Warren75513
Switzerland7537
Union67110
Ohio53211
Unassigned0431

COVID-19 Important links and resources

As the spread of COVID-19, or as it's more commonly known as the coronavirus continues, this page will serve as your one-stop for the resources you need to stay informed and to keep you and your family safe. CLICK HERE

Closings related to the prevention of the COVID-19 can be found on our Closings page.

Community Events