Former Federal Reserve chairman Ben Bernanke, the government official who has the highest bounty on the bitcoin assignation market, offered both complement and criticism when discussing bitcoin in a new interview, suggesting that government oversight of blockchain transactions could counter perceived risks.
During an interview with Quartz, Bernanke said that bitcoin is "interesting from a technological point of view", referring to the increasing investment into the blockchain startup company.
According to the interview, Bernanke said "We're in a world where the payments system is evolving quickly and new approaches to managing payments are proliferating, and some of the ideas around bitcoin will no doubt be useful in doing that."
However, Bernanke said bitcoin has serious problems “The first is that it hasn’t shown to be a stable source of value. Its price has been highly volatile and it hasn’t yet established itself as a widely accepted transactions medium." He went on to suggest that government officials might look to boost oversight of digital currency activity, highlighting the perceived anonymity of bitcoin and pointing to its role as "a vehicle for illicit transactions,drug selling or terrorist financing or whatever".
"And you know, governments are not happy to let that activity happen, so I suspect that there will be oversight of transactions done in bitcoin or similar currencies and that will reduce the appeal," he said in the interview.