BIS Chief Fears "Systemic Threat" Of Bitcoin, Urges "Pre-emptive Action" From Authorities

While US regulators appear to prefer a "balanced" approach to controlling the cyrptocurency space, and Fed officials "are not worried about Bitcoin," it appears the new head of the so-called "central-banks' central-bank" is most definitely concerned.

Bloomberg reports that in his first major public speech as head of the Bank for International Settlements, Agustin Carstens argued that central banks -- along with finance ministries, tax offices and financial market regulators -- should police the "digital frontier." He said they must ensure a level playing field and functioning payment systems, and safeguard the “real value” of money.

“Bitcoin is not functional as a means of payment, but it relies on the oxygen provided by the connection to standard means of payments and trading apps that link users to conventional bank accounts,” Carstens said in Frankfurt on Tuesday.

“If the only ‘business case’ is use for illicit or illegal transactions, central banks cannot allow such tokens to rely on much of the same institutional infrastructure that serves the overall financial system and freeload on the trust that it provides.”

Simply put, Carstens argues that there is a "strong case" for authorities to rein in digital currencies because of their links to the established financial system...

“If authorities do not act pre-emptively, cryptocurrencies could become more interconnected with the main financial system and become a threat,” he said.

“Most importantly, the meteoric rise of cryptocurrencies should not make us forget the important role central banks play as stewards of public trust..."

"Private digital tokens masquerading as currencies must not subvert this trust.”

As a reminder, the BIS helps central banks pursue monetary and financial stability and while Carstens - who took over late last year after leading Mexico’s central bank - joins a list of establishment-types expressing reservations, his warnings are the most systemically serious so far with respect the truly disruptive nature of cryptocurrencies (as opposed to the usual ignorantly repeated narrative of criminality, ponzi-scheme, or worthlessness by so many.)

Comments

Pandelis Voluntary Exchange Wed, 02/14/2018 - 04:30 Permalink

Another little known former BIS chief is Herr Hjalmar Schacht.

 

Herr Schacht left BIS to head the Central Bank of Germany from 1933 to 1939 and was largely responsible on Germany's "economic miracle".

 

Another little known detail is that most of gold stolen by Hitler in various countries during world war II was deposited in London (most probably under Herr Schacht instructions) and never given back to those countries (greece is an example).

 

In reply to by Voluntary Exchange

giovanni_f johngaltfla Wed, 02/14/2018 - 06:10 Permalink

gonna translate 4 you ZH deplorables what this fat rothschild pig vomits:

"I, the highest priest, unelected and not accountable to anyone except my invisible divine superiors of the black globalized nobility, 

command you serfs [transl. "our Authorities"], louse-bitten, dwelling in abject filth and devoid of soul, most contemptibly depending on being elected by a abominable, wiggling mass of excrement-exuding vermin, [transl. "we , the people"]

to unleash the hellhounds to fend off this onslaught upon the foundation [transl. "fiat money"]of our holy priestly fraternity [transl. "banks"]."

In reply to by johngaltfla

BallAndChained Voluntary Exchange Wed, 02/14/2018 - 06:11 Permalink

> (as opposed to the usual ignorantly repeated narrative of criminality, ponzi-scheme, or worthlessness by so many.)

It is not ignorant, it is true.

Mindlessly reading from the crypto pumpers handbook is what is ignorant.

Some of the smartest people in the world don't hold imaginary coins, yet the crypto pumpers handbook requires that they all be called ignorant. Repeated calling someone ignorant does not make it true. The crypto pumpers are only fooling themselves.

 

In reply to by Voluntary Exchange

Conscious Reviver Pandelis Wed, 02/14/2018 - 11:13 Permalink

Another little known detail is that most of gold stolen by Hitler in various countries during world war II was deposited in London (most probably under Herr Schacht instructions) and never given back to those countries (greece is an example).

Doesn't this seem to indicate that Adolph and some of his supporting cast were Zionist Bankster agents?

Where's Slack Jack?

In reply to by Pandelis

gunzeon tmosley Wed, 02/14/2018 - 06:56 Permalink

laugh and make me an idiot all you want.

Fact is, Bitcoin is the premier, the most decentralized, the most reliable, the biggest and most distributed team.

The fact that it has not succumbed to miners and bully investors counts and adds to it's value.

Once sites can take lightning payments and punters are using lightning wallets the game is over for fiat and a lot of the crypto wannabe, also-ran, whatever alts too.

You can gamble on two flies crawling up a wall instead.

In reply to by tmosley

Heros gunzeon Wed, 02/14/2018 - 05:24 Permalink

So now the pig is wearing lightning lipstick. <yawn>

https://seekingalpha.com/article/4146386-bitcoins-record-low-volumes-pr…

The piss poor performance has lead to a collapse in volume, no surprise transactions are cheaper.

The real issue is that I don't want my money behaving like a soap opera with a new plot twist every day in the never ending battle between greedy feminist bitches.

In reply to by gunzeon

gunzeon Heros Wed, 02/14/2018 - 06:15 Permalink

Where is it written that bitcoins must be an appreciating asset ?

Were they invented to be a speculators hobby horse ? Or, to facilitate value exchange between parties that do not trust eachother ?

Like i said, the crash in volume is the sour grapes B-Trash easing off on the spamming operation.

Also, this is an evolving ecosystem, lots to be won and lost but it is taking root no doubt, if you don't like the heat get out of the kitchen, it's not for the candy-asses !

ps: go back to apple stocks like Mom and Dad - ( thanks to Coindaddy Bearish )

 

 

In reply to by Heros