BIS Head Called Bitcoin a Ponzi Scheme, Urged Central Banks To Act Against It

post image

Agustin Carstens, the General Manager of world’s central banks ‘parasol’ – Bank for International Settlements – has expressed his negative attitude towards cyber assets. He compared BTC to a bubble and a Ponzi scheme at the same time as well as urged central banks to be cautious with cryptos.

Central Banks To Raise Against Cryptos?

On February 6, the head of BIS, famous Mexican economist Carstens said that cyber currencies, including BTC, were not as stable as fiat money. He also added that they could not fit the traditional definition of currency and called top banks all over the globe to be ready to oppose them.

Central banks will have to do it, according to Carstens, to prevent a situation whereby they become less credible when cryptos take roots in the financial sphere, as Reuters reported.

Taking the floor at Goethe University in Frankfurt, Carstens also emphasized that virtual money has caused a need for regulatory interference. In particular, he said that cyber-coins could make both investors and average people fretting. Therefore, governments should take the lead and be ready to safeguard them from risks that cryptos carry.

“Private digital tokens masquerading as currencies must not subvert this trust (in central banks),” also said BIS head.

Bitcoin As a Bubble

Being recent among world top leaders, who have spoken not in favor of cryptos, Carstens went on to calling bitcoin a unit of “a bubble, a Ponzi scheme, and an environmental disaster.” The last point, by the way, was alluding to the process of virtual assets production – mining.

As it is known, mining consumes a lot of power, and Carstens is not the first policymaker who has expressed concerns over this issue. Previously, Christine Lagarde, the International Monetary Fund Managing Director, called mining as an “energy angry” process.

Cryptos As a Breach For Criminals

Moreover, BIS head suggested that cyber money might become “parasites” in the real-time financial industry. But to preclude such a situation, governments should make sure that only licensed and verified platforms and other products are permitted to take part in banking services like making transactions, etc. To sound uncompliant, Carstens added that no exclusions could be made in this regulatory issue.

Lots of countries have already concerned about money laundering, the supply of terrorism and purchase of tabooed items, to which crypto market can lead. And Carstens seems to have agreed with this attitude.

“Individuals who massively evade taxes or launder money are the ones who are willing to live with cryptocurrencies’ extreme price volatility,” added he.

Interestingly, UK’s Prime Minister Theresa May has also warned the world against the use of cryptos by people with malicious intentions.

Such countries, as China and South Korea, have already started taking measures against cyber money market which jeopardizes, according to their view, both the economy and the financial stability of ordinary consumers. Such tackling policy, as well as speculation around it, has become one of the factors which caused the crypto market to drop by 50% recently.

What is a Security Token?
Security tokens became very popular, but do you really know what is STO?STO is Security Token Offering, which is identical to an ICO. In this, there are...
Canada Reports Blockchain To Be Amongst Its Highest Paying Industries
A report recently published by the Canadian Digital Chamber of Commerce proves that the money involved in the blockchain industry of the nation is at the...
«Why Didn’t I Buy it Then?»: As BTC’s $3,700, Experts Ponder on Its Future
As bitcoin has just celebrated the anniversary of its almost $20,000 record, the world does not stop talking about it. After a terrifying dip, on December...
Draper Expects Crypto-Market to Surge to $80 Trillion in 15 Years
Tim Draper, an investment mogul and a known bitcoin bull, has spoken out about cyber assets once again. The famous investor predicts the entire BTC and...
Ethereum-Related Securities See Suspension From Trading Imposed By SEC
Bitcoin Tracker One as well as Ether Tracker One, two cyber-asset-related products are stopped from being traded. That’s the decision made by the American...
New Crypto Hanacoin to Be Launched on June 12
As the world is expecting four countries – South Korea, North Korea, the US, and China – to fashion a peace agreement at their Singapore meeting, new crypto...
Latvian Gov’t Considers Recognizing Cryptos As ‘Means Of Exchange’
Latvian crypto enthusiasts may soon start enjoying cyber assets legally. However, they will also be obliged to pay taxes on them. According to local reports,...
Thai Central Bank Required Banks To Stay Away From Cryptos
Asian crypto market might not be having the best time of its existence in view of regional governments curbing on the use of bitcoin and its brethren. ...
What Did Experts Say About Cryptocurrencies For 2018?
In the current year, crypto-currencies can show even more significant growth than in the previous year, and the capitalization of cryptology may exceed...
Hong Kong’s Financial Regulator Vowed to Keep an Eye on Cryptos and ICOs
Hong Kong is believed to be a freer place for crypto enthusiasts. BTCC exchange case alone is enough to prove it. At the end of January, one of the oldest...
Buterin Donated $2.4 million To Anti-Aging Research
The SENS Research Foundation , a nonprofit research fund to combat aging, received a donation of $ 2.4 million from Ethereum founder Vitalik Buterin. All...
The "CryptoKitties" was replaced by "CryptoCelebrities"
At the end of last year, we told you about the game CryptoKitties, in which you can buy and sell virtual kittens. Recently it became known about another...
JPMorgan’s Jamie Dimon Accepts Being Wrong When Called BTC a “Fraud”
The Chairman and CEO of the US largest bank JPMorgan Chase – Jamie Dimon – five months after calling bitcoin a “fraud” decided to take it back. In a conversation...
‘They Will Come To a Bad Ending’ – Billionaire Buffet on Cryptos
Rich and influential in the financial world people keep bullying bitcoin. On Wednesday, January 10, bitcoin’s long-term enemy Warren Buffet “predicted”...
Fast and Secure Exchange Between Myriad of Blockchains to be Real
Speedy and secure swapping between various blockchain networks will soon come true as Open Trading Network launches its revolutionary products. Being the...