Content adapted from this Zerohedge.com article : Source
The head of the Bank for International Settlements, Agustin Carstens, gets it.
He realized that bitcoin is a threat to the established banking system. Unlike many other central bankers who voice a mild approach, Carstens is calling for the banking system to active pre-emtively.
"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..."
Carstens is using pulling out the usual mantra about bitcoin, that it is used to buy drugs or is a ponzi scheme.
"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."
He realizes that bitcoin is something they can not control.
Non-adapted content of this Zerohedge.com article: Source
This fat man is more interested in protecting his personal power and that of his banker friends than protecting the public. Bitcoin is useful for a wide variety of things besides "illicit or illegal transactions".
While it is partially true that bitcoin is used in illegal transactions, that is a total red herring. There is also a serious effort on the part of the financial elites in government and academia to ban cash as well, who make the same argument that cash is used for criminal activity. Bannng cash and cryptocurrencies would be a way for governments to gain more control over their citizens and monitor their every activity. It would also allow governments to do things like impose negative interest rates to coerce their people into spending and making risky investments to seek some positive yield. That would allow this bozo and his elite buddies to control society and rob its members on such a grand scale that it would make all of the world's drug cartels envious. Negative interest rates have been imposed in various countries but have been totally ineffective, in part because people and corporations can hold cash and other assets like gold to avoid losing money via negative interest rates.
This clown's comments are incredibly self-serving and should be discounted. I don't think bitcoin will cause banks to go away but it will radically change the way they do business.
BIS argues that when evaluating digital currencies, central banks need to look at the effects of financial stability, as well as confidentiality as well as efficiency questions.
Crypto currencies have been recognized by central banks and top officials for the last few years. For example, Germany's Bundesbank president Jens Weidmann said earlier this year that digital currencies, such as the bills, had the potential to cause financial crises in the future.
Centralized banks as " as stewards of public trust..."
Because Crypto currency is sooo involved in the drug trade & laundering..
Oh wait...
Just in 2014 HSBC evaded criminal prosecution by paying a fine of almost $2 billion for Drug laundering in Mexico.
The lack of imprisonment of any bankers involved is indicative of the hypocritical nature of the drug war; an individual selling a few grams of drugs can face decades in prison, while a group of people that tacitly allow — and profit from — the trade of tons, escape incarceration.
Some people...make it so obvious.
Great post @Zer0hedge
Agustin Carstens is right about bitcoin becoming a big threat to the banking system. Cryptocurrency is indeed being used for illegal and illicit activities, but that's no excusse to fight it. Banks too have had their own challenges; Not to forget the financial crisis of 2007–2008, also known as the global financial crisis and the 2008 financial crisis which is considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s. The public suffered huge consequences as we witnessed the housing market suffering, resulting in evictions, foreclosures, and prolonged unemployment. This went on for a long time until the system went back to the drawing board and found measures of fixing it where we had the US Federal Reserve and central banks around the world taking steps to expand money supplies.
These challenges just like the cryptocurrency market being used for illegal and illicit activities are temporary and can be fixed.
The cryptocurrency market is less than a decade old and still going through a transition. Soon the illegal and illicit activities in cryptocurrency will be over come and we shall witness a clean market where governments will have no worries.
It is natural that he is afraid of decentralization
And the coin has brought me another way to the world
Fa bitcoin is fast and effective. Sending and receiving formulations is very fast, almost free, and practical. Bitcoin is like a financial email, but instead of sending messages around the world, you send money. All you need to do is enter your friend's bitcoin address or locale, select the quantity, then press the submit button. Done! - No need to wait days or to incur high commissions imposed by banks and other money transfer companies
Bitcoin is secure, and its system is based on highly developed algorithms. Unlike money, bitcoin is not possible
bitcoin universal advantages. It does not matter where you live. Bitcoin can be used anywhere in the world as long as you have a phone or Internet receiver. It's like traveling around the world without having to switch currencies
bitcoin is updatable. Bitcoin can be updated or reinforced with a myriad of new features. That's because bitcoin is like a lot of new technologies - driven by a powerful computer program. Such as applications on the App Store, if you develop a development that you can build and deliver to the world. For example, it is possible for Bradcock to have his own bitcoin account, which enables him to automatically buy milk once he has run out of milk.
bitcoin respects your privacy. You will never need to give your personal information and risk losing your money or stealing your identity through plagiarism. Since you never give your personal information, there is no information that a hacker can steal. Compare this with traditional payment methods, all of which require you to provide your postal address, name and phone number. All of this information may take possession of your wallet to steal your identity. (Earlier this year, the US company Targat was hacked and 70 personal information seized Million customers).
All these qualities make them afraid. @zer0hedge
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.
” ... that would be none since they are all corrupted elitist scumbags whose product is money from thin air bearing interest.
This scam will soon be over.
This guy will be surviving on his blubber for months (hopefully).
The fact is that 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.
Thanks for your valuable & most important message.We can take out a lot of information from your blog.
@Resteem & follow has been done.
Thanks
Once payment channels are in place there will be no need for settlement banks in the future since many if not all the cryptocurrencies will benefit from atomic transactions and exchanges rather than going through settlement banks. He is focused on keeping his job not on what's best for the population. cryptocurrencies will be the end of banks and the beginning of Internet banking where we cut out the middlemen.
His notion of safeguarding "real money" is 8% annual inflation of the Mexican Peso during his tenure as the head of the privately owned Mexican central bank. Nothing scares these cats more than a free market in currencies.
very interesting, it inspiring
Nice post...... Thanks for the update......have thought about it before... Bravo one more time
a slightly different thought
but thanks for a good post
Looks like, our "so beloved, elected politicians will show their true colours", one by one, or maybe all together.
never thought of it that way.
probably only a mather of time before crypto currencies becomes illegal and governments will make their own coins as the only vaild and legit crypto.
imagine a TrumpCoin when you shop online in the near future....
@steemcleaners
@steemcleaners