Belarusian banker: Crypto-currencies are a modernized pyramid scheme

Belarusian banker: Crypto-currencies are a modernized pyramid scheme

The Chairman of the Board of the Belarus Development Bank Sergei Rumas compared crypto-currencies and all the hype around them with the popular financial pyramid of the 1990s.

"If we consider it as a means of investment, it is a modernized MMM [a pyramid that was popular in the 1990s in Russia]," Rumas told reporters, answering the question about his attitude to crypto-currencies.

"The first people who invested money will earn, but many will lose."

"If we consider it as a means of payment - yes, this is a convenient tool, especially for those who for various reasons want to circumvent the requirements of regulators. Therefore, I do not quite understand why Belarus should be ahead of the whole planet in this respect," he added.

Rumas has a similar opinion about blockchain.

"I would not say that this is a revolution. Yes, this is a new advanced technology, based on a distributed database. The scope of its application can be very extensive, but to say that by introducing it, we will solve all problems and make a breakthrough is probably an overestimated expectation," said the banker.

Sergei Rumas stressed that this is his "personal position."

This opinion contradicts the recently signed decree on Hi-Tech Park 2.0 (officially Decree on Digital Economy), which introduces into law smart contracts, blockchain and crypto-currencies.

MORE: Belarus Hi-Tech Park Decree 2.0: document analysis