Charlie Munger Calls For Crypto Ban As Berkshire Hathaway Sinks Money Into Crypto Business

Charlie Munger, Warren Buffett's longtime business partner and vice-chairman of Berkshire Hathaway, has called for an outright ban on cryptocurrency even as the holding company invested $1 billion in a Brazil-based digital bank.

Berkshire Hathaway recently acquired shares worth $1 billion in NuBank, one of the largest digital financial services providers in Latin America. Nubank does not directly facilitate crypto trading, but its investment unit called NuInvest allows users to invest their money in various crypto assets and Bitcoin exchange-traded funds (ETF).

Berkshire Hathaway bought a $500-million stake in NuBank in December 2021.

Munger, a lifelong critic of crypto-assets, likened them to "venereal diseases" and stated that they are"beneath contempt" while speaking at the Daily Journal Corp's annual meeting in Los Angeles on Wednesday.

This is not the first time Munger has expressed skepticism about cryptocurrencies. He has previously equated cryptocurrencies to gambling. He reinforced that opinion on Wednesday, claiming that Bitcoin is run by a group of people looking to amass wealth while contributing very little to civilization.

He has previously applauded China for banning cryptocurrencies and said that even the U.S. should have followed suit. He argued that he considers cryptocurrencies to be "beneath contempt" because they are used in "extortions and kidnappings [and] tax evasion."

When questioned about his views on cryptocurrency and whether he believes he missed an opportunity by not investing, Munger stated, "I most emphatically did not invest in cryptocurrency."

Munger's longtime business partner Warren Buffett, CEO of Berkshire Hathaway, also has time and again shared his negative stance on cryptocurrencies. The businessman is a well-known opponent of blockchain technology, having compared Bitcoin to "rat poison" in a 2018 interview with CNBC. He has also said that the digital asset "has no unique value at all” and creates "no value" for society.

It is noteworthy that the company has constantly been dropping its investments in traditional financial assets and institutions. The SEC filing also revealed that the company had dropped around $3 billion worth of shares in Visa and Mastercard.