Economist Doubt CryptocurrencyMarch 29, 2018
Professor Andrew K Rose of the Hass School of Business, University of California, Berkeley was reported to have said many financial institute and organizations can’t predict what the end of cryptocurrency will be like, considering the fact that there are many competing firms, and so many competing standards, it’s not clear that they are going to succeed.
“Something associated with blockchain is going to succeed, but cryptocurrency at this point strikes me as a bubble, and it’s a bubble and is therefore very popular to discuss.”
Event held in Barbados
professor in Economic Analysis and policy Rose, said crypto is very far from being called a currency
“It can’t be use to buy coffee in a fast food restaurant and that is unlikely to happen in near future”
In crypto encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank.
in 2009, Bitcoin created was the first decentralized cryptocurrency. Since then, many other cryptocurrencies have been created.
In his deliberation, the economist said that Caribbean countries like Barbados should look at how Iceland has been able to develop its economy.
“It is a relatively small country, very much involved in tourism, so it is similar in size and scope to Barbados in a number of ways and therefore to other Caribbean countries.
Iceland got help from the European union, neglecting the IMF(International monetary fund ), and now their economy has been restructured
“So if I had to look for an example…avoid going to the IMF and not do things in the traditional ways, [I would say] think of Iceland,” he told the audience.
He also added that the current Brexit negotiations, where Britain is holding talks with the European Union to leave that grouping, will create economic confusion for the region.
“I can’t imagine you will see any serious negotiations concluded for Brexit over the foreseeable future, and that is going to lead to tremendous uncertainty for anything related to British commerce.”
“Barbados would be seriously affected because lots of tourists come from United Kingdom and this would affect other businesses”
“That’s not going to be good news for the countries of the Caribbean that want to do business with the UK,” he said, noting that “while in some sense you want the Brexit negotiations to be tough …but that said, anything that adversely affects the UK is going to be bad for anyone doing business with it”.
He concluded by saying “If I were in charge, and I have no desire to be in charge, I would say diversification from the UK is a good idea North America seems to be the most obvious choice for the countries in the Caribbean”.