In a recent interview with the head of the Bank for international settlements (BIS) predicted the cryptocurrency «bad end»and called for an end to their creation.
In an interview with Swiss media 30 June, Agustin Carstens (Agustin Carstens) mentioned cryptocurrency and confirmed their conviction that they represent a «bubble, a pyramid scheme and an ecological disaster», according to the report published by BIS on Wednesday.
On the question of whether he agrees with the fact that the cryptocurrency has had a positive impact, forcing young people to think about money, Carstens said that cryptocurrencies have no major functions to be considered a currency. In this regard, the head of the BIS argued that the actions associated with cryptocurrencies, are an attempt to create money out of nothing.
«Young people should use their many talents and skills for innovation, not to reinvent money. It is a mistake to think that money can be created out of nothing,» said Carstens. «Look into the past, and you will see that the establishment of gold or money out of nothing – the usual obsession that occurs with surprising regularity. It never worked… So my message to young people is this: stop trying to create money!»
Carstens is Director General of the Bank for international settlements December 2017. Since the appointment he always openly expressed his negative stance against the cryptocurrency industry. Despite the fact that many heads of large financial institutions allowed themselves to loudly speak out against bitcoin and other cryptocurrencies, the position of Carstens have been particularly hard even on their background.
Previous statement on the topic of cryptocurrency Karstens did in February of this year during a speech the University of Goethe. Then he said that bitcoin, despite the fact that «he intends to become an alternative payment system without the participation of the government, has become something of a cross between a bubble, a pyramid scheme and environmental disaster.»
The position of the BIS as a whole coincides with the opinion on cryptocurrency broadcast its CEO. In June, in its annual economic report, the Bank for international settlements, said that the bitcoin can replace money, but there are niches where its use can be very effective.
Also in March, the BIS expressed
opinion in respect of national cryptocurrencies, which are increasingly the subject of discussions by Central banks of different countries. The Bank for international settlements expressed their concern at the «dire consequences for the global financial system» that they can cause.