After the 10th birthday of Bitcoin, its strong momentum has made some crypto critics to change their hard opinion on crypto assets. The leader of this wave is Agustin Carstens, the General Manager at the Bank of International Settlement [BIS]. BIS is considered as the bank of Banks as it mostly deals with central banks and international financial institutions.
Speaking at the conference, Carstens said, “They [digital assets (DAs)] might have room as part of financial assets, but not as a cash substitute.” This has been the first time the BIS general manager is casting Bitcoin in a positive light. For instance, XrpCenter tweeted, “Speech on crypto is changing. This is the 1st positive comment on crypto from Agustin. He has authored many anti-crypto articles before.”
The anti-crypto sentiments released by the BIS chief were ranging from warning crypto developers from launching a new and different form of money to seeing no value in cryptocurrencies issued by central banks. In Mid-2018, Carstens cautioned crypto asset coders to “stop trying to create cash” since cryptos will not be lasting for long and there is a possibility of its end in a bang. In a statement published on the BIS website on the 4th of July last year, the BIS chief said, “Even the great physicist Isaac Newton was at one point in his life obsessed with alchemy and the idea of making gold… After he failed in his attempt to make gold, he switched sides and sent counterfeiters to prison. So my message to young people would be: Stop trying to create money!” In March this year, while addressing the Central Bank of Ireland, the BIS general manager said, “There are huge operational consequences for central banks in implementing monetary policy and implications for the stability of the financial system. Central banks do not put a brake on innovations just for the sake of it. But neither should they speed ahead disregarding all traffic condition.”
In his speech, Carstens talked about a situation where central bank-backed digital assets would alter rates of interest. In February last year, while speaking at Goethe University, Carstens said, “Bitcoin and all its friends are a “combination of a bubble, a Ponzi scheme and an environmental disaster.” After all these threats now a change on how he sees crypto assets has come as a shock to most crypto enthusiasts out there.