Altcoin News: BIS Chapter: “Banks Should Not Issue Their Own Digital Currencies”

March 23, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Agustín Carstens, President of the Bank for International Settlements (BIS), once again spoke out against cryptocurrencies and said that banks should not issue their own digital currencies (CBDC).

Carsten warned banks about the dangers of creating a CBDC. In his opinion, digital currencies go against all banking convictions, reduce financial stability and may affect the policy of banks to protect their customers.

“There are huge operational consequences for central banks in implementing monetary policy and implications for the stability of the financial system. Central banks do not put a brake on innovations just for the sake of it, but neither should they speed ahead disregarding all traffic conditions,” the head of BIS emphasized.

Carsten said that the release of digital currencies by central banks could lead to a “financial panic” when people start withdrawing money from state-owned banks and investing them in private financial institutions. According to the head of BIS, this may adversely affect refinancing rates and reduce market liquidity.

In addition, at the beginning of last year, Agustin Carstens stated that Bitcoin is a bubble, a Ponzi scheme, and an environmental catastrophe.

He still not get it, or what?

Author: Marko Vidrih