Bank of International Settlements President Talks About Cryptocurrencies: “The War Is Lost!”

President of the Bank for International Settlements Augustine Carstenscryptocurrency exchange of FTX He says that after his bankruptcy, cryptocurrencies lost the battle to be an alternative to fiat money.

Cryptocurrencies Lose The Battle Against Fiat Coins, According To Experienced Analyst

“I think this battle is lost,” the veteran executive told Bloomberg TV yesterday. A technology cannot generate reliable money,” he said.

Crypto advocates often tout blockchain technology as a way to solve inefficiencies in traditional monetary systems.

Bitcoin can be used to make unlimited payments without incurring exorbitant remittance fees. From its network’s inception in 2008, Bitcoin has been defined, according to its whitepaper, as “a purely peer-to-peer version of electronic money, allowing online payments to be sent directly from one party to another without going through a financial institution.

The immutable and transparent nature of a distributed ledger can be seen as an added value for users who do not want or cannot go through third-party intermediaries such as banks.

However, investors need to be able to digest the volatility that comes with an emerging technology as well as access to a digital wallet.

Carstens also pointed to the collapse of crypto exchange FTX, which US prosecutors describe as one of the “biggest financial scams in American history” for further hesitation towards digital assets.

Carstens added that due to this collapse, regulations will likely strengthen.

The industry was already having a rough year when FTX filed for bankruptcy in November, and its market cap has fallen by two-thirds since its all-time high in November 2021.

Only the legal, historical infrastructure behind central banks can give money great credibility, according to Carstens, and he believes crypto can really only do so under certain conditions.

*Not investment advice.