‘a technology doesn’t make for trusted money’ -Stringent stattement by BIS Chief

[Flexystar]

The BIS Chief Agustin Carstens stated in his interview that Bitcoin has lost it's battle against fiat and it can not prove itself as perfect monetary system. Cryppto as whole is failure because of it's various failures whether it is exchanger collapses, whether it is bitcoin getting down by 65% from it's value or having unproven ways of transacting it.

He calls it as "non crediting" system which do not give/make up for a credibility of the user. For example, a central banking system with it's historical perspective can make this happen.

Furthermore, he also fingered stabelcoins with failed asset and many of them "blown off" stability and made losses to many investors in the process. THis happened because they were not able to keep the prices to $1.

Since he is a banker, I believe he thinks crypto is failure because it does not "add" any value to your crediting history. It does not move your CIBIL score and thus no one can trust you financially if you go completely decentralized over the period of time.

How strong his statement could be in making a negative impression over crypto community?

The argument that crypto is an alternative to fiat currency has been settled following last year’s turmoil in the digital-asset sector, according to Agustin Carstens, the head of the Bank for International Settlements.

“That battle has been won,” Carstens said in a Bloomberg TV interview on Wednesday. “A technology doesn’t make for trusted money.”

The digital-asset sector is still licking the wounds of a $2 trillion rout and the November collapse of Sam Bankman-Fried’s FTX exchange, which has morphed into one of the highest-profile corporate crime cases in US history.

Bitcoin, for instance, is down 65% to $24,150 from a peak near $69,000 in 2021. The crypto collapse and a series of related bankruptcies undermined the claim that tokens can be relied on as stores of value and mediums of exchange.

Read more: BIS Says Retail Lost Crypto Money as Whales Sold in 2022 Crash
“Only the legal, historical infrastructure behind central banks can give great credibility” to money, Carstens said, adding he anticipates a “strong statement” from the Group of 20 for strengthened regulation of the digital-asset sector.

Crypto is a financial activity that can really only exist “under certain conditions,” he said.

Carstens also spoke at the Monetary Authority of Singapore, saying that central bank digital currencies — or CBDCs — and tokenized deposits can aid efficiency. He proposed the model of a unified blockchain under a public-private partnership where a central bank underpins trust in CBDCs.

Carstens touched on private-sector stablecoins in the speech. He said regulators must ensure stablecoins don’t harm investors and consumers or fragment the monetary system.

Stablecoins are crypto tokens that are intended to hold a set value, for example $1, but some have blown up, saddling investors with losses.

Crypto Has Lost the ‘Battle’ Against Fiat Currency, BIS Chief Agustin Carstens Says

[franky1]

The BIS Chief Agustin Carstens stated .. whether it is bitcoin getting down by 65% from it's value

if he thinks economic VALUE is at the peak of a temporary 1 hour event of an ATH price.. he really needs to hand in his resignation stating he is not skilled enough in economics to be in the role. . fall on his sword and then go back to college to learn economics

heres a free lesson for him
high prices = premium. not value

[pooya87]

The BIS Chief Agustin Carstens

AKA a bankster.

Bitcoin has lost it's battle against fiat and it can not prove itself as perfect monetary system.

Bitcoin was never perfect and is not supposed to be perfect. It is better than the existing monetary system though.

Cryppto as whole is failure because of it's various failures whether it is exchanger collapses,

That is correct, the altcoins as a whole is a failure not just some centralized service falling apart, but they are failed as projects.

whether it is bitcoin getting down by 65% from it's value or having unproven ways of transacting it.

And it is a million percent above its initial value! It is also worth twenty thousand times more than US dollar!
Of course a bankster sees that as a failure

Furthermore, he also fingered stabelcoins with failed asset and many of them "blown off" stability and made losses to many investors in the process. THis happened because they were not able to keep the prices to $1.

In other words he said "centralized shitcoins are bad" which we all agree!
It also has nothing to do with bitcoin and we all agree with that too.

Since he is a banker, I believe he thinks crypto is failure because it does not "add" any value to your crediting history. It does not move your CIBIL score and thus no one can trust you financially if you go completely decentralized over the period of time.

Maybe, or maybe because bitcoin makes people like him obsolete. It's like the steam engine that made many jobs and people in them obsolete.

[thecodebear]

Eh, he's a banker afraid and misunderstanding of a new system.

It's true there is no credit in Bitcoin and the world does largely run off the credit system. But Bitcoin isn't going to replace fiat anyways. It is an alternative system. Bitcoin will coexist with fiat. Bitcoin will be people's long term savings, it will be an easy way for them to send money to other places in the world, it will be what they sometimes use for spending, it will be store of value.

People will still use fiat and exist in the credit system so that's fine. Bitcoin is just humanity's alternate money that people will use in parallel with fiat and use Bitcoin for its strengths (appreciating, global, sovereign money) and fiat for its strength (stable in the short term so good for spending and short term savings, building credit).

Claiming Bitcoin doesn't have value and has failed would be like claiming there is no value in relatively stable national currencies and no value in the credit system. Claiming either one would be ridiculous. They are the two sides of the coin, each very different and valuable to the world for their differences.

[avikz]

Why would I hear from a banker about cryptocurrency? It makes no sense! We all know that cryptocurrency is a direct competitor of the regulated financial corporations. The presence of cryptocurrency is actually making them nervous about the future of their business. So it's no wonder that they will try to defame their competitor when it's not coming from a centralised entity.

Just ignore and take a break!

[franky1]

Maybe, or maybe because bitcoin makes people like him obsolete. It's like the steam engine that made many jobs and people in them obsolete.

yep
imagine a house was $120k and you only had savings of 5% deposit($6k)
the year is 2012 and average btc is $6

choice is
A buy bitcoin then buy a house in 10 years.
B put the money down as deposit and pay mortgage payments for 20 years

A you buy 1000 coins. and 10 years later those 1000coins are worth $16m-$24million
the house sold in 2012. and then reappeared on the market again in 2022 for $200k
meaning you as a millionaire only have to put in ~1% of your wealth to buy it

or
b.
you put down that $6k as a deposit. and then need to work a couple decades to pay the bank more money.
however at the halfway position you review your standing..  after 10 years of say $750 monthly deposits. meaning you gave them so far on a  mortgage $96k.. of hard sweat labour. your still only halfway to the total of owning the house which will require about in total $186k to pay it off and finally be declared a true house owner in 2032.. but you have no savings left to maintain the house or modernise it or cover any other costs

.. yea id rather do it the bitcoin way
and yea. i have not neded to worry about my credit score. because i am self sustainably wealthy due to bitcoin. why would i need to take out a loan when deflationary currencies make saving up a better option than the 'take now pay later' fiat con

[LoyceV]

For example, a central banking system with it's historical perspective can make this happen.

This claim is an outright scam. Proof:

(source)

Let's stop listening to bankers. Their interests are not our interests.