Cryptocurrencies Should Face More Regulation, Says BIS’s Carstens

Jafrin  |  Mar 24, 2021

The general manager of the Bank for International Settlements (BIS), Agustín Carstens has said that cryptocurrencies are used for evading laws and should face more regulation. Due to the absence of laws in cryptocurrencies in terms of money laundering and terrorism financing, digital currencies are notable among law evaders. According to him, Bitcoin is used more as a speculative asset rather than real money. Therefore, there is no way cryptocurrencies should pose a threat to central banks, Carstens says.

'Cryptocurrencies Should Face More Regulation'

In an interview with CNBC, Agustín Carstens said that cryptocurrencies are usually used for evading centralized regulations.

According to him, crypto coins are used more as a speculative vehicle and therefore doesn’t pose a threat to the current financial system and central banks, adding:

“They have their own role for very specific purposes. Therefore, I don’t see any challenge to sovereign money coming from these privately used currencies.”

Even stablecoins have limited applicability despite being tied to fiat currencies to reduce price volatility, unlike cryptocurrencies known for their wild price swings, saying “Stablecoins also have some limited applications”

Earlier this week, BIS general manager Agustín Carstens and Federal Reserve chair Jerome Powell said central banks should take time to research their own central bank digital currency and could fail if they tried to move too fast.

Agustín Carstens Critical of Bitcoin

Even during Bitcoin’s record highs in January, the manager of the Bank for International Settlements (BIS), warned about the dangers of investing in it. The former secretary of the U.S. Treasury warned that Bitcoin is increasingly vulnerable and could completely collapse adding Bitcoin is a speculative asset, not money.

Agustín Carstens previously remarked on bitcoin’s long-term saying it was only a matter of time before a 51% attack would bring down the leading cryptocurrency. Bitcoin is up more than 80% since the beginning of the year, even though it’s down about 12% from a record high above $61,000 earlier this month.

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