Agustin Carstens, the BIS General Manager, stated that Bitcoin is a risky investment sooner or later but that the CBDCs are even better.
There is a possibility that Bitcoin might “break down altogether,” and it is conclusively a hazardous investment, as it has been reportedly stated by the Bank for International Settlements or BIS today.
According to the latest report from Bloomberg today, the bank, which serves as a bank for central banks, also stated that only the central banks should issue digital currencies.
The BIS General Manager Agustin Carstens has also been quoted stating in a speech for the Hoover Institution that Bitcoin becomes vulnerable to different attacks. It closes in on its maximum supply of 21M coins.
Carstens has bashed Bitcoin in the past. In 2018, he described it as a “combination of a bubble, a Ponzi scheme, and an environmental disaster.” Bloomberg also reported that Carstens stated that stablecoins were troublesome since a private entity is responsible for backing the asset.
On the other hand, Central banks were in a much better place to work on digital currencies, and the BIS has been researching the matter. “If digital currencies are needed, central banks should be the ones to issue them,” he was quoted commenting.
Governments worldwide are looking into or attempting to have their own central bank digital currencies (CBDCs), the digital versions of a government’s fiat currency. The Bahamas has started rolling out a CBDC last year. Meanwhile, China is currently piloting a digital yuan.
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