It's not the money: the representative of the Bank for international settlements again criticizes Bitcoin

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2018-11-08 15:00:21

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It's not the money: the representative of the Bank for international settlements again criticizes Bitcoin

Bitcoin is a speculative investment with great potential for growth. Thinks most cryptoendoliths, but the owner of the shares of one of the world's largest financial institutions disagree. In his opinion, Bitcoin and altcoins are nothing but simple software algorithms with zero utility.

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Banks vs. cryptocurrency

To this verdict, the General Manager of the Bank for international settlements (BIS), Agustin Carstens. During his speech at the conference in Miami Mexican economist said efforts to reform platinix systems of the Central banks. It turns out that they carry a lot more economic sense than digital assets.

The term «currency» in this context is incorrect. Cryptocurrency like Bitcoin, Ethereum and Tesera not perform the key functions of money.

To prove their point of view, Carstens referred to the volatility of the crypts.

None of the cryptocurrencies is not a unit of account or payment instrument. In addition, over the years, we have seen that they also serve a poor tool for storing wealth. Buyers of crypto currencies acquire the software and nothing more.

The report of the General Manager of the BIS also mentioned the distribution of payments for the past 16 years.

Globally, the share of cashless payments in GDP has reached 25 percent by 2016. For comparison: in 2000 it was 13 percent of GDP.

Carstens believes that the improvement of already existing banking infrastructure is much more important than the blockchain.

image Source — Daily of the Day

And although this work attracted not so much attention as cryptocurrencies, the improvement of equipment, software and other processes enhances the financial stability of each person.

Earlier in an interview with Basler Zeitung Carstens warned young people from «attempts to create new money». According to him, they should focus on the development of real technologies, and not on the cryptocurrency that does not fulfil any of the objectives of the money.

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