The head of the Bank for International Settlements (BIS) continued the institution’s critical stance on cryptocurrency, saying it “cannot take over the functions of money,” BIS reported on July 4th.
Bank for International Settlements (BIS) general manager stated cryptocurrency “are not a good means of payment”
In statements to the Swiss daily Basler Zeitung last week, later published by the BIS, general manager Agustin Carstens warned the “young people” against “trying to make money,” referring mostly to the Bitcoin (BTC) mining industry.
Those who have the greatest incentive in the system of this so-called cryptocurrency are those who produce the assets – the miners. This incentive, however, is not compatible with maximizing the utility of money. he told the publication. Cryptocurrency does not serve any of the three purposes of money. They are not a good means of payment or a good unit of account, nor are they suitable as a deposit of value. They fail dramatically in each of these counts.
Agustin Carstens, general manager of BIS
This is not the first time BIS position itself against cryptos
The BIS caused outrage when it published an article on cryptocurrency in June, and the significant media widely reported its highly suspicious view of the phenomenon against the fiat currency. Along with identical concerns about its potential to function as “fiat money,” the article also feared that the massive adoption of cryptocurrency could “stop the Internet” and other controversial claims.
Continuing the story, Carstens, who in turn has on multiple occasions presented himself as against cryptocurrency, said that it would unequivocally not have a “happy ending.”
“You don’t have to beat around the bush like that. It should not be forgotten that central banks have been providing electronic means of payment for decades,” stated Agustin Carstens, general manager Bank for International Settlements (BIS).
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.