General Manager Of The BIS Slams Cryptocurrency
“Cryptocurrencies are … a bubble, a Ponzi scheme and an environmental disaster.” – Agustín Carstens
Following the Bank for International Settlements’ Cryptocurrencies: looking beyond the hype report, Agustín Carstens, head of the Bank for International Settlements, had stern comments regarding this new asset class in his interview “My message to young people: stop trying to create money.”
When speaking of Switzerland’s National Bank electronic payment system, Carstens stated he “can’t imagine something coming along any time soon that would be more efficient and generate the same level of trust.”
“Central banks are trusted, and that trust is something they have built up over decades and for which there is no substitute right now. Trust is a valuable commodity. It is easily destroyed, but winning it takes time. Money has become established. Young people should use their many talents and skills for innovation, not reinventing money. It’s a fallacy to think money can be created from nothing.”
To no surprise is trust the backbone of central banking. However, Carstens is eager to dismiss cryptocurrencies by stating that they do not fulfill any of the purposes of money.
At the protocol level, cryptocurrency’s use of game theory, mathematics, and cryptography provide the basis for transparent money, minimizing trust of actors through means of distribution, hence distributed ledgers.
When it comes to cryptocurrency investing, it is of utmost importance that you do your own research (DYOR)!