Cryptocurrency a “Failure” as Money -BIS Chief

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On July 4, the head of the Bank of International Settlements’ (BIS) explained their stance on cryptocurrency saying it “cannot assume the functions of money”.

Speaking to Swiss newspaper Basler Zeitung last week, general manager Agustin Carstens cautioned “young people” against “trying to create money,” drawing comparisons to Bitcoin mining.

He told the publication, “those who have the biggest incentive in the system of these so-called cryptocurrencies are those who produce the assets – the miners… This incentive, however, is not compatible with maximizing the usefulness of money.”

There had been an outrage with regards to BIS’ when it published an article on cryptocurrency in June. The media reported that it was highly suspicious on the on the phenomenon versus the fiat currency.

On its potential to function as “money”, there are some concerns that mass adoption of crypto could “bring the internet to a halt”.

Continuing the narrative, Carstens, who has himself come out as a cryptocurrency bear on multiple occasions, said it would unequivocally not have a “happy ending.”

“…No need to beat about the bush on that count. One mustn’t forget that central banks have been providing electronic means of payment for decades,” he continued.

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