There has been a lot of debate over Bitcoin’s viability as a medium of exchange since the flagship asset shot into the limelight in 2017. Although many believe Bitcoin’s asset class has revolutionized financial transactions, there are some who believe Bitcoin could replace fiat currencies.

CNBC’s Ben Bernanke, the former chairman of Federal Reserve Bank spoke out about whether digital assets can be used as an alternative to money due to rising energy costs and concerns over recession. He explained:

You can see what the down side of Bitcoin and currencies that have their value changing minute by minute. However, they are not intended as a replacement for fiat currency. They have failed in that regard. If they’re a substitute for fiat money, you can use your Bitcoin to buy groceries, nobody does that because it is too much convenience.

Like other government officials, Bernanke was quick to highlight Bitcoin’s use case in illicit activity, with the former exec claiming that the asset’s primary use is mainly for underground economy activities.

Bernanke goes on to caution investors who view Bitcoin as a store of value, noting that the cryptocurrency is a speculative asset and will be subject to “a lot more regulation.” However, renowned crypto advocate Anthony Pompliano quickly stepped forward to defend Bitcoin, slamming Bernanke for being biased.

Pompliano noted that the exec’s views are “factually inaccurate,” debunking the claim that Bitcoin is mainly used for illicit purposes.

We have people like the former acting director of the CIA who’s gone onto the blockchain analyze the transactions and come out to an estimation that point four percent of all transactions are for nefarious or illicit purposes.

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