Head of BIS Announced Once Again that the Cryptocurrency cannot Perform the Functions of Money

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The head of the Bank for International Settlements (BIS) said that the cryptocurrency is not a substitute for money because it cannot perform the same functions as traditional currencies.

During his interview with Basler Zeitung, which was later published on the BIS website, general manager Agustin Carstens called on “young people” not to try to create a cryptocurrency, giving a comparison with Bitcoin mining:

“Those who have the biggest incentive in the system of these so-called cryptocurrencies are those who produce the assets – the miners… This incentive, however, is not compatible with maximising the usefulness of money. Cryptocurrencies do not fulfil any of the three purposes of money. They are neither a good means of payment, nor a good unit of account, nor are they suitable as a store of value. They fail dramatically on each of these counts.”

We would like to remind you that the article published by BIS last month caused a wave of indignation when representatives of BIS stated that cryptocurrencies could lead to negative consequences and destroy the existing digital finance system.

It is worth noting that Karstens, who previously had a bearish view of the cryptocurrency, once again stated that this sphere will not have a “happy ending”. He noted:

“…No need to beat about the bush on that count. One mustn’t forget that central banks have been providing electronic means of payment for decades.”

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