BIS Chief: Crypto Has Lost the ‘Battle’ Against Fiat

Agustin Carstens, the head of the Bank for International Settlements (BIS), believes the argument that crypto is an alternative to fiat currency was settled after a very tumultuous year for the digital asset industry in 2022.

The BIS has traditionally held a cautious view of Bitcoin and other cryptocurrencies. According to the BIS’s chief, Agustin Carstens, caution is no longer needed as the “battle had been won” between fiat and crypto.

During an interview with Bloomberg, the general manager of the BIS said, “technology doesn’t make for trusted money,” among various other criticism of digital assets. Carstens added:

“Only the legal, historical infrastructure behind central banks can give great credibility” to money.

He furthers he anticipates a “strong statement” from the Group of 20 (G20) for tightened regulation of the digital asset sector. Carstens notes that cryptocurrency is a financial activity that can only exist “under certain conditions.”

The BIS, which acts as a central bank for central banks, underscored the dire need for regulation and risk management of the space. However, the comments made by the bank’s chief have provoked a strong reaction from the crypto community.

Ray Youssef, CEO of Paxful, told the media outlet Cointelegraph:

that it’s “easy to get sucked into these battles but is all a distraction with no ROI.”

Adding:

We must focus on the battles in the global south and fight for every inch and every eyeball. What is happening in Nigeria now is vital for us all.

Continuing:

Want to p*ss the clowns off? Ignore their FUD bait and focus all in on the global south and what is happening on the streets of Nigeria.

Many also took to Twitter to offer some corrections to Carstens’ claims. What Bitcoin Did, a popular podcast hosted by Peter McCormack, responded by posting some statistics to counter and correct a further inflammatory statement published by the BIS recently. According to the BIS, from August 2015 to December 2022, “nearly all economies made losses on their Bitcoin holdings.” McCormack jumped at the opportunity to refute the BIS’ claims:

BIS analysis: Aug ‘15-Dec ‘22 “majority…in nearly all economies made losses on their #Bitcoin holdings”

Facts:
-Majority of global fiat lost value to USD since 2015
-USD has lost over 26% of its own value due to inflation#Bitcoin has gone up nearly 8000%

Facts be sticky pic.twitter.com/mMyBzuVhWz

— What Bitcoin Did (@WhatBitcoinDid) February 21, 2023

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.