The collapse of cryptocurrency exchange FTX has added a lot of weight to the mill of cryptocurrency detractors. The American economist Nouriel Roubini is one of them. In recent years he has been very critical of the industry, indicating that most of them are Ponzi schemes. Recently, he made some scathing remarks about the Abu Dhabi authorities allowing Binance to operate as a custody service provider in the region.
Spotlight on Binance and CZ!
During the recently concluded Abu Dhabi Finance Week, US economist Nouriel Roubini once again criticized cryptocurrencies. This time, the criticisms have focused in particular on the Binance exchange and its boss, Changpeng Zhao (CZ). Roubini has it To express his disagreement with the authorization given by the Emirati government to Binance to operate in the country. For him, the local financial services regulator should have thought more carefully about the matter. This is because Binance has been banned in some countries and in the crosshairs of justice in some other jurisdictions.
“I can’t believe Binance has a license to operate in the UAE. Unfortunately, it’s a totally corrupt ecosystem. What happened recently is the lesson that these people should be out of here (…) Binance has been banned in the UK. CZ is under investigation by the US Department of Justice for money laundering. There are 8 billion dollars coming from Iran, but he is here, and he has a residence in this country (…) We should expel him. I’m sorry to say it, but it’s a walking time bomb.”he said. And to continue: “CZ is even more seedy than Sam Bankman-Fried”.
The economist’s observations have been widely commented on social media, creating a controversy that has swelled a lot. Many within the crypto community felt these were personal attacks. For others, the economist has pushed the envelope too far in his hatred of cryptocurrencies. To all this he has answered on Twitter that it is not.
“I wasn’t attacking CZ. I was telling the UAE authorities that Binance shouldn’t have a license to operate in the country. This, while they are banned in the UK and under investigation by the US Department of Justice.”he wrote.
Nouriel Roubini became famous for predicting the 2008 crisis. He fiercely opposes cryptocurrencies and believes CBDCs will dethrone them.
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Far from dampening my enthusiasm, a failed investment in a cryptocurrency in 2017 only increased my enthusiasm. I therefore decided to study and understand the blockchain and its multiple uses and to convey information related to this ecosystem with my pen.