Bitcoin and Cryptocurrencies May Help Stabilize Financial System Says Forbes Chairman

Jessica Bay Last Updated on June 16, 2020

Cryptocurrency especially the leading digital asset Bitcoin is nowadays the main topic of discussion among the famous businessmen as they have started considering Bitcoin as a hedge fund.

Recently at this weekend, in an interview with the U.S. Center for Natural and Artificial Intelligence, the Chairman of Forbes, Steve Forbes has said that Bitcoin and cryptocurrencies may help governments in stabilizing their financial systems during the current uncertainty of financial markets.

Forbes Founder speaks on crypto and Bitcoin

The U.S. is currently printing excessive money to contain the current financial and economic situation. Forbes Chairman is of the view that this may lead the U.S. to the instability of the financial system and believes that only Bitcoin and cryptocurrency may help to protect from unstable financial policies making it possible for the government to stabilize the financial system.

He gave the example of Japan who started a Quantitative Easing (QE) Program in the 1980s which later on led them to face a massive decline in inflation and economic output. After that, Japan has not been able to recover completely even after the duration of thirty years. According to Steve Forbes, the U.S. is repeating the same mistake.

The Digitalization of Financial system

Forbes states that governments should make a move towards the digitalization of the financial system. Governments are turning their attention to quantitative easing (QE) and are printing excessive money. This will cause instability in the financial system.

Cryptocurrencies may help governments to avoid this long-term instability as they are technologically-advanced and forward. Forbes founder says that Governments will seek the help of Bitcoin and cryptocurrencies in that critical situation. Keeping in view the importance of Bitcoin and cryptocurrency, Forbes has urged for more technological developments which should be made on the basis of the Bitcoin blockchain.