Central banks should guard against "invasion" of encrypted currency

release:2018-02-07 15:50:46 publisher:ARTS coin_Global art digital asset trading platform-artschain.com


Speaking at Goethe University in Frankfurt on February 6th, Augustin Carstens, president of the Bank for International Settlements (BIS), called bitcoin a "combination of bubbles, Ponzi schemes and environmental disasters" and called for tighter central bank oversight of encrypted currencies.


The Bank for International Settlements is known as the central bank's central bank because it provides banking services only to central banks and other international organizations.

In August 2017, Carstens, president of Mexico's central bank, said Bitcoin was not money, but commodities, and warned people not to use it for cybercrime.

Carsten's latest comments came on Tuesday morning, after market value, the traditional and encryption markets, fell sharply on February 5th. Several large banks, including Lloyds Bank Group in the UK and JPMorgan Chase in the United States, have also banned customers from using their credit cards to buy encrypted currency.
According to Augustin Carstens, the global interest in encrypted currencies is only a "speculative frenzy" and requires strict central bank regulation:

If the authorities do not act preemptively, encrypted money could be interlinked with major financial systems and pose a threat to the stability of the financial system.

Augustin Carstens is worried about the introduction of Bitcoin ATMs by some banks because he believes bitcoin is so likely to be used illegally that encrypted currencies cannot be linked to mainstream financial institutions:
If the only "business use cases" are used for illegal transactions, the central bank cannot allow digital money to be attached to the same system of economic trust and infrastructure that serves the entire financial system, preventing it from becoming a "parasite."

However, Elliptic, a joint blockchain analysis firm with the Defense Fund of the Center for illegal Financial sanctions and Democracy, recently released a report on tracking the illegal circulation of funds in the Bitcoin economy from 2013 to 2016: in Bitcoin cash flow, The share of illegal money has fallen below 1%, and that figure has fallen exponentially as encrypted money has been widely accepted and welcomed.

Source: Babbit information

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