BIS chief Carstens on cryptocurrency: “Stop trying to create money”

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by | 5th July 2018 | 0 comments

“Those immature young people and their bitcoins, will they ever learn?”

If we had to describe the opinions of international banking chief Agustín Carstens’ on cryptocurrency, both as an economic pursuit and a technological development in one line the above quote would clearly fit into the picture.

Carstens who just recently has been appointed as the general manager of the Bank for International Settlements (BIS), apparently known as the “central bank’ of all central banks”  is till date one of the most publicly opposing critic of the cryptocurrency. Take for example his earlier comments, where Carstens stated that bitcoin is “a bubble, an environmental disaster, and a Ponzi scheme.”

Carsten stated to the masses that even the legendary scientist Isaac Newton had tried to create money out of nothing and failed, and people today should learn from it and avoid doing the same mistake.

On the contrary, it is really interesting to read and elaborate Carstens’ translated remarks at length:

“Look over into the past and you will see that making gold or cash from nothing has been around for quite some time. It never worked. Indeed, even the great physicist Isaac Newton was at one point in his life fixated by alchemy and making gold. He had tasted glory in so many different fields, but this was the one field where he failed. Newton went on to become the head of the British Mint. Wonder why? Because within an instinct he could detect if a coin was counterfeit. Once he faced defeat in his effort of making gold, he went on to switch sides and started hunting for counterfeiters. Hence my advice to every individual out there would be, Stop making futile attempts at creating money.”

The BIS chief further went on to claim that he is concerned by the pace of technological progress and his advise to the young people is “ to dedicate their efforts to better aspects rather than an asset class that does not fill in any money purposes.”

He further mentioned that“Reinventing money should not be a center of focus for people rather the youth should focus on creating new innovations with their talents and skills, creating money out of nothing is a myth”

Concluding his speech, Carstens went on to claim that currently central banks are “trusted” while also adding that, so far there hasn’t been any viable substitute to take up their role in the world economy.

According to Carstens, “It is beyond imaginable to think of something coming along any time in the near future that would prove to be more efficient and also gain the same level of trust.”

 

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