UK Labour Party MP Diane Abbott offered a harsh assessment of Bitcoin and other cryptocurrencies during a recent interview with Politics Home in which she referred to the world’s most popular digital currency as a “Ponzi scheme.” Abbott, who serves as the UK’s Shadow Home Secretary, suggested that Labour will attempt to regulate cryptocurrency when the party regains power.
Like other Bitcoin critics, Abbott was dismissive of the cryptocurrency’s potential as the future of money:
“One of the problems with Bitcoin is the extent to which it is just a gigantic Ponzi scheme. If everyone took their Bitcoin money and tried to buy a new car all at once the whole thing would collapse. So, we are worried about the extent to which Bitcoin is a Ponzi scheme, but we are certainly worried about how in the here and now it is being used to fund terrorist activity and that is something we are looking at.”
She also cited the 2009 financial crisis as an example of why Labour is committed to increasing regulation throughout the financial industry:
“Labour overall thinks it’s important to have proper regulation of financial services. It was poor regulation of financial services which led to the 2008 crash and obviously regulating Bitcoin would be part of that.”