Diane Abbott, the UK Labour Party’s shadow home secretary, recently weighed in on bitcoin and revealed that she sees the cryptocurrency as a “gigantic Ponzi scheme.” She added that the Labour Party would regulate if it had the power to do so.
Speaking to Politics Home, Abbott weighed in on bitcoin, and presumably the cryptocurrency space as a whole. It is unclear what form the regulations would be applied. The Labour Party is known for being a strong proponent of regulations and government oversight.
“Labour overall thinks it’s important to have proper regulation of financial services,” the MP for Hackney North and Stoke Newington said. “It was poor regulation of financial services which led to the 2008 crash and obviously regulating bitcoin would be part of that.”
Abbott didn’t stop there. She also revealed she believes the cryptocurrency’s price is artificial. According to her, the cryptocurrency’s value would collapse if every bitcoin investor attempted to trade their coins for fiat. Moreover, Abbott added that bitcoin is being used by terrorist organizations, and that this concerns the Labour Party.
The secretary’s opinion echoes that of Bank of England governor Mark Carney, who recently warned all cryptocurrency investors could lose all their funds. Per Carney, the cryptocurrency space should adhere to the same rules and standards the traditional financial system adheres to.
Diane Abbott further explained how she believes bitcoin could collapse. She stated:
“If everyone took their bitcoin money and tried to buy a new car all at once the whole thing would collapse.”
Other public figures have also taken a harsh stance against bitcoin. Charlie Munger, a 94-year-old business partner of Berkshire Hathaway CEO Warren Buffett, recently stated that it is “disgusting” people buy bitcoin and other cryptocurrencies.
Diane Abbott is known for controversial remarks
Notably, the shadow home secretary is known for her controversial and often ill-informed remarks. She has in the past suggested that the Labour Party could get as many as 10,000 people to join the UK police for £300,000, which would equal £30 ($41.4) per officer.
Other than that, she also pointed out that the lesson to be learned from a tragic fire was that “fire puts out water,” but then corrected her mistake. In her tweet, she proceeded to call for the government to add“sprinklers in tower blocks now.”
— Diane Abbott (@HackneyAbbott) December 14, 2017