Manager for Bank of International Settlements Bashes Crypto (Again)

Manager for Bank of International Settlements Bashes Crypto (Again)

The general manager of the Bank for International Settlements, Agustín Carstens, is known to make cryptocurrency-averse remarks. He has now been at it again, speaking at the University of Miami Business School’s 70th anniversary.

More specifically, Carstens told the crowd that Bitcoin, and cryptocurrency in general, did not hold any economic value. In addition to this, he also noted that it would even be false to call cryptocurrencies ”currencies” at all.

”The use of currencies in cryptocurrencies is misleading”

”The use of ’currencies’ is misleading. Cryptocurrencies, such as bitcoin, ether, and tether, do not serve the core functions of money,” he argued. Carstens then pointed to cryptocurrencies as having substantial volatility – even though this is something that has fallen massively recently.

Carstens also went on to reference the price decrease experienced by cryptocurrencies during most of 2018. Furthermore, he also argued that fans of cryptocurrencies are merely purchasing an intangible computer algorithm.

”No cryptocurrency is a true unit of account or a payment instrument, and we have seen this year that they are a poor store of value. Buyers of cryptocurrencies are buying into nothing more than a software algorithm.”

As avid followers of the cryptocurrency markets will know, this is not the first time that Carstens has come out hard against virtual currencies. He has previously called Bitcoin ”a bubble, a Ponzi scheme and an environmental disaster” at another speech at a university.

Moreover, he has also lambasted young people exploring cryptocurrencies, instructing them to ”stop trying to create money.”

Bank for International Settlements is the ”central bank of central banks”

Nevertheless, it should not be entirely surprising that Carstens is a staunch opponent to cryptocurrencies. He is, after all, the general manager of the Bank for International Settlements – commonly referred to as the central bank of central banks.

Carstens had a message to attendees, however, besides criticizing cryptocurrencies. He tried to persuade the audience that the perceived importance of cryptocurrency pales in  comparison with traditional payment changes.

More specifically, he highlighted upcoming payment system reforms being conducted by central banks. He also said that the work central banks are doing to reform payment systems is ”far more important” than cryptocurrencies.

Carstens comments will in all likelihood fail to convince many cryptocurrency enthusiasts, as he has vested interests in central banking.

Image Source: “Flickr”

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