General Manager, Bank for international settlements (BIS) , Agustin Carstens (Agustin Carstens) believes that cryptocurrency was another attempt to create new money and quickly to earn some money.
“Inventing a new cryptocurrency is the latest Chapter in the long history of attempts to invent new money, as seekers of destiny tried to make a quick profit. This was the alchemy of era of innovation with the promise of a magical transformation of everyday substances (in this case, electricity ) into gold (or at least in the Euro),” wrote Agustin Carstens said in an article for the quarterly review BIS “International banking and financial market developments”.
The head of the BIS said that the currency makes the recognized credibility of the institution to the Issuer, and successful Central banks have this quality, time-tested.
“Even in this digital age the credibility of the institution-the Issuer has value and will continue to support the currency. Central banks, for their part, will have to continue to earn public trust, carefully preserving the value of its currency”, — he said.
In this case, “a cryptocurrency eventually offer get rich quick schemes”, which “can not be combined with sovereign currencies and existing payment systems, time-tested,” said Carstens.
“A brief experience of cryptocurrency shows that technology, however sophisticated it may be, is a poor substitute for hard-earned confidence in healthy institutions,” concluded Carstens.
The General Manager of the BIS, the article also pointed out that Central banks around the world, “working retail payment systems which will allow you to make instantaneous translations at any time and in any place.” In this widely tested technology of the distributed registry, but not as a replacement but as a complement to existing systems, he said.
It is noteworthy that earlier the representatives of the company Ripple admitted that actively promoted market solutions for cross-border payments and xCurrent xRapid not replace the existing system, but only improve their.
We will remind, in the beginning of the year, Agustin Carstens harshly criticized bitcoin, calling the first cryptocurrency a combination of bubble, pyramid schemes and environmental disaster.