‘Bitcoin can collapse completely,’ says Agustín Carstens, former finance minister

January 30, 2021
2 min read

At the height of the Cryptocurrency Boom that Director of the Bank for International Settlements (BIS) , Agustin Carstens He warned of the dangers of investing in them. The former finance secretary warned that Bitcoin Increases sensitive Yes could collapse completely .

Yesterday January 27, during the political seminar of the Hoover Institution

said the Mexican economist Bitcoin is a speculative asset, not money .

Investors should be aware of this Bitcoin it can completely collapse. Scarcity and cryptocurrencies alone are not enough to guarantee the exchange. “ Explain Carstens and add that “” Bitcoin is more and more vulnerable .

This too former Governor of the Bank of Mexico confirm that Central banks must control the issuance and management of digital currency

. Remember they have the financial structure to guarantee Cryptocurrency Stability .

“For digital currency to exist, the central bank must play a fundamental role, ensuring the stability of its value, ensuring the elasticity of the global supply of this currency and controlling the general security of the system. Such a system cannot fail and does not tolerate serious errors. , Carstens said.

pic.twitter.com/18523AdPeg

– Bitcoin (@Bitcoin) January 29, 2021

The BIS Manager said the other in private Stablecoin Projects like Facebook are more credible than Bitcoin , but it needs to be regulated.

“In general, private stablecoins cannot serve as the basis for a healthy monetary system ,” he said. “However, to remain credible, they must be tightly regulated and monitored. They must build on the foundations and trust of existing central banks and therefore be part of the existing financial system. .

Many countries are currently targeting it Central Bank Digital Currencies (CBDC) . In fact, 86% of major central banks are actively seeking CBDC , according to a current A Investigation.

Carstens have shown that National CBDCs It can be used in a number of ways, such as communicating monetary policy and managing interest rates. Said they should be in addition to the existing cash register system

because all bank and cash accounts will be completely replaced by digital currency “undesirable” Yes “unrealistic . “