Cryptocurrencies Do Have A Massive Role In Global Finance, Admits Bitcoin Critic
Bitcoin and cryptos, in general, are becoming a less controversial idea as time passes, even for the most fierce critics.
Agustín Carstens, the general manager of the Bank of International Settlements, has recently spoken at the Conference on Technology-Enabled Disruption and he questioned the lack of tangible assets that are backing cryptos. He also asked for more clarity for consumers.
For a long while, Carstens has been against BTC and cryptos, and he used to call them “fake money” and also used to beg people to stop “trying to create money.”
The economist said that the incumbents are facing pressure from startups and tech giants as well. He’s the banker for more than 60 central banks that are powering an established financial system at a global scale.
Cryptos are innovative and disruptive
But it seems that these days, he doesn’t look that anti-crypto anymore. He seems more open to the idea of living with digital assets, and he categorizes them as innovative and disruptive at the same time, as reported by the Daily Hodl.
“They have a role as a crypto asset. What I would want to see is to have more clarity in terms of what the assets are. Giving some guidance to potential investors to have clear rules, and so on,” he said as cited by the online magazine mentioned above.
Crypto “cannot replace cash”
He is exploring the new space that digital assets are occupying in the financial markets, but he also draws a line on cryptos that aims to be spent by everyday shoppers and consumers who are using digital wallets.
Watch Agustín Carstens speak about digital currencies and blockchain with @RobSKaplan at the conference on technology-enabled disruption organised by @DallasFed @AtlantaFed & @RichmondFed pic.twitter.com/VArCoZWkzl
— Bank for International Settlements (@BIS_org) June 4, 2019
“They might have room as part of financial assets in general but not as cash or a cash substitute.”
In a blog post for Reuters, Carstens posted the following:
“Today’s cryptocurrencies, for example, do not fulfill money’s basic premise: to serve as a unit of account, a means of payment and a store of value. Central banks have called out the false promises made by the creators of cryptocurrencies and will remain alert to potential threats to monetary stability.”
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.