Moneycontrol
Last Updated : Jul 06, 2018 04:35 PM IST | Source: Moneycontrol.com

Bank of International Settlements chief on crypto: Stop trying to create money

When asked if he believes that cryptocurrency has had a positive impact on youth, Carstens asserted that cryptocurrencies fail from having the core features to be a currency

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Head of the Bank of International Settlements (BIS) Agustín Carstens has demanded an end on cryptocurrency production, hinting towards its tragic end in a recent interview.

Last week, during an interview with a Basel-based media outlet, Carstens targeted cryptocurrencies and said that they represent “a bubble, a Ponzi scheme and an environmental disaster,” as per a transcript published by BIS.

When asked if he believes that cryptocurrency has had a positive impact on youth, Carstens asserted that cryptocurrencies fail from having the core features to be a currency. He added that as such, activities related to cryptocurrency represent an effort to create money out of nothing.

Carstens stated, “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. Glance back into the past and you will see that creating gold or money from nothing has been a regular obsession. It never worked. ... So my message to young people would be: Stop trying to create money!”

With this, Carstens joins the long list of financial behemoths, including JP Morgan, Chase CEO Jamie Damon and serial investor Warren Buffet, who have directly or indirectly criticized cryptocurrencies.

BIS, an international institution known to serve as a bank for central banks, appointed Carstens as the general manager in December 2017. Since then, Carstens has been known for making critical statements about cryptocurrency.
First Published on Jul 6, 2018 04:35 pm
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