The head of the Bank for international settlements (BIS) again spoke negatively of bitcoin and urged everyone who creates it, to stop doing it.
The General Manager of the BIS, Agustin Carstens (Agustin Carstens) has a reputation as a brilliant economist, worked as Governor of the Central Bank of Mexico and Chairman of the development Committee of the International monetary Fund. Later Karstens almost became the General Director of the IMF, but lost in the competition Christine Lagarde (Christine Lagarde). In December 2017, he led BIS. The Bank has long been interested in the cryptocurrency area, however, showing a cautious attitude. In February, Carstens called cryptocurrency “bubble, Ponzi scheme, and ecological catastrophe” because of the large consumption of energy required for their production.
In a recent interview with Basler Zeitung, published on 25 June, he repeated his concerns. To a journalist’s question whether Agustin with the fact that the cryptocurrency has had a positive impact by calling in young people an interest in the monetary sphere, the head of the BIS said that the digital currency have little in common with real currency. Therefore, in his opinion, all the actions associated with the cryptocurrency — it attempts to create money out of nothing. Carstens believes that young people need to use their many talents and skills for innovation, and not to reinvent money.
“Crypto-currencies do not perform any of the tasks of real money. They are not a good means of payment, not perform unit and is not suitable as a means of savings,” — said the head of the BIS.
He also proposed to look into the past and notice that people are constantly trying to make money out of thin air, but it never works. Carstens cited the example of Isaac Newton, who was obsessed with the idea of creating gold and in the end, failed.
The head of the BIS clearly delineates cryptocurrency and the blockchain, considering the recent promising technology that can solve a number of problems. However, the production of money, in his opinion, the function of the blockchain should not go.
We will remind, recently, another famous economist, Nobel prize winner Paul Krugman, also spoke negatively about the cryptocurrency. He called them “fake” and criticized the Ripple and bitcoin.
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