Holding a speech, BIZ chief Agustín Carstens calls Bitcoin a “bubble, pyramid scheme and environmental catastrophe”. Further integration of crypto and fiat currencies must be prevented. The Bank for International Settlements (BIS) is considered the most powerful financial institution in the world.
BIS chief Agustín Carstens said in a lecture today that Bitcoin’s three basic functions of money – payment, store of value and processing unit – didn’t meet. Literally, Carstens said:
“Bitcoin has become a combination of bubble, pyramid and environmental catastrophe – the volatility of Bitcoin makes it poor mean of payment and absurd store of value – very few people use it for payments or as a unit of account. Tickets for a large cryptocurrency conference can not be paid with Bitcoins because it was too expensive and too slow, so only conventional money was accepted. ”
Concerns of many Bitcoin fans against more regulation should be further fueled by Carstens’ speech. The BIS chief is asking central banks and regulators to further stop linking crypto and fiat currencies. Ultimately, central banks are guarantors of public trust. Virtual currencies should no longer be allowed to use the structures of the international financial system and parasitize on its trust.
About the Blockchain technology, Carstens said: “Novel technology is not synonymous with better technology or better economy. The authorities have a duty to ensure that technological advances are not used to legitimize profits from illegal activities and to educate and protect investors and consumers.”
Bitcoin temporarily fell below $ 6,000 on Tuesday morning. Currently, crypto reserve currency stands at $ 6,522 (as of 06/02/2018, 12:01:10 clock). In mid-December 2017, a Bitcoin price was almost $ 20,000:
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