BIS Chief Bashes Cryptocurrencies Once More in Review Of Its Failure as Money
The chief of the Bank of International Settlements (BIS) has continued to pose as critical of the new cryptocurrency market. According to reports, Agustin Carstens has stated that the cryptos cannot assume the same functions of money.
The executive has cautioned the “young people” against “trying to create money”. According to him, the main interest in the “so-called cryptocurrencies” is the one from the people who produce the assets, the miners. His problem with this, though, is that this incentive is not really compatible with maximizing the usefulness of the money that is being mined.
Cryptocurrencies Are Not Money, Carstens Affirms
The strongest affirmation of the chief of BIS is that cryptos do not fulfill any of the three purposes that money needs to have. According to him, cryptocurrencies are not a good way for payment (because they are volatile and the fees are high), they are not a good unit of account and not even suitable as a way to store value.
By “failing dramatically” in all of the three functions of money, they believe that cryptos are simply speculative assets.
This is not the first time that the BIS causes outrage in the cryptocurrency community with its affirmations. A published article in June has stated that mass adoption of cryptos could bring the internet to a halt and has made other controversial affirmations.
If it depends on the chief of BIS, Bitcoin and the other cryptos have no future at all. He does not believe in their potential and has stated on occasion that central banks already have been providing electronic means of payment for decades, so cryptocurrencies are not needed nor are so new.