BIS Whales Reveal Their True Thinking
In a strongly-worded statement, the Bank of International Settlements (BIS) head Agustin Carstens has said that young people must “stop trying to create money.” Carstens said that cryptocurrencies are “ponzi scheme[s]” destined to “fail dramatically.” Although Carstens’ words aren’t the only harsh commentary from the top tiers of the legacy money masters, he has presented as a startling buffoon, showing remarkable myopia for a man in his position.
Bashing cryptocurrency from the current standpoint, where digital currencies represent a very small segment of the overall investment spectrum, Carstens has granted a glimpse of the true unwillingness and immobility of vested fiat interests. Epitomizing the caricature of the old school central banker, his comments have indeed sparked debate. Yet many commentators wonder out loud how anyone can entertain such opinions in 2018.
The Nocoin Fanatics’ Fringe
Carstens’ comments have prompted many to take to social media in response. Some tweets were positive, as @JamesGRickards tweeted “I doubt the typical crypto-coder has ever heard of Agustin Carstens. Here's a primer: He's one of the three most powerful international monetary elites along with @Lagarde & Mark Carney. When he says cryptos will “fail dramatically” you should believe it.”
The NYT best-selling author weighed in, saying that when the BIS chief speaks, his words set the trajectory of things to come. Rickards is a persistent bitcoin troll that has repeatedly made the news as he gloated over the 2018 bear market to date. He lacks mainstream credibility, however, as his nearly decade-old predictions on the fate of gold have failed to materialize.
Looming somewhere in the future, bitcoin and other altcoins face a murderous battle for existence against vested interests. Millions of people – including a few thousand incredibly powerful ones who have a hold on the world’s money supply – stand to lose their positions of power if digital currency usurps fiat the world over. In spite of, or perhaps because of his position, most enthusiasts have dismissed Carstens as a dinosaur. They maintain that the “death of Bitcoin” conversation no longer has tenure in 2018.
Cryptonuts Not Typical Opponents
In the face of formal sector repudiation, enthusiasts point out that blockchain technology and Bitcoin itself is not amenable to control. As a fundamental tenet of a decentralized ledger, cryptocurrencies should be able to avoid centralization. Even were a government to monopolize a digital coin, success still hinges on uptake.
Governments and big business have legislative power on their side. Enthusiasts have anonymity, decentralization and democracy on theirs. Bitcoin, for one, has an innate ability to remain free of bureaucratic control.
Carstens’ words have shocked many, as they are indicative of zero movement at the top. As the leader of “the central bank for central banks,” the man referred to as “The Final Boss” by one enthusiast is a rather blunt capitalist with dubious honors. Saifedean Ammous (@saifedean) tweeted: “Forget bankers, economists, politicians, journalists, or altcoins. Bitcoin is up against the BIS, and THIS is The Final Boss it has to defeat.”
Carstens is a former Mexican politician and graduate of the Milton Friedman-influenced Chicago School of Economics. The latter has an atrocious history of attempting to engineer South American policies over the last 60 years or so, duly documented by Naomi Klein in her book The Shock Doctrine. He also has a history at the International Monetary Fund as Deputy MD.
Carstens was a member of the team broadsided by the last great economic collapse, and “epitomizes what is wrong with global finance,” according to some observers. In spite of being Finance Minister in Mexico during the recovery, many point to that uneven and poorly effected easing and wonder how Carstens, having messed up many portfolios, now sits at the head of BIS.
What If Carstens Is Right?
As obnoxious as it seems to many, a more measured and protracted glimpse of the world of central bankers might validate Carstens, at least on the existing playing field. While most see his suggestions that cryptocurrencies should simply disappear laughable, but perspectives deliver different verdicts. While Carstens is the epitome of all that conspiracy theorists allege and has been part of a team that made a giant mess in many places by applying their fiscal dictates, some wonder if he knows something the rest of us don’t.
It is a commonly held belief in the cryptosphere that – as demonstrated by the unseemly haste and often ludicrous volumes of legacy bail-out and easing strategies – central bankers are inherently evil, subjugating the world to whatever their vested interests might dictate. Although obnoxious to many, there might be some valid insights that inform Carstens’ comments. The ultimate doom of bitcoin, however, isn’t one of them.