According to Agustin Carstens, the head of the Bank for International Settlements (BIS), cryptocurrencies have lost the “battle” against fiat currencies issued by the world’s central banks. While speaking at the Monetary Authority of Singapore on Wednesday, Carstens stressed that stablecoins are not reliable because they lack the “institutional arrangements and social conventions behind them.”
Agustin Carstens, the general manager of the Bank for International Settlements (BIS), believes that cryptocurrencies have lost the battle against national currencies such as the euro, pound, and yen. Carstens gave a speech at the Monetary Authority of Singapore and was also interviewed by Bloomberg News. The BIS general manager told Bloomberg that the battle between fiat and crypto assets “has been won.” Carstens insisted that technology alone does not make for “trusted money.” The BIS GM added:
Only the legal, historical infrastructure behind central banks can give great credibility to money.
Carstens made similar statements during a speech at the Monetary Authority of Singapore, using stablecoins as an example. He said that there will always be “alternative visions of what a future monetary system and digital money could look like” and added that some cryptocurrency proponents believe stablecoins will be the future of money. The BIS general manager wholeheartedly disagrees because he thinks these proponents forget what sustains fiat currencies.
“What this view forgets is that what sustains fiat money is not the application of novel technologies but all the institutional arrangements and social conventions behind it,” Carstens said. “And it is precisely these arrangements and conventions that make money reliable for the public.”
Carstens detailed that the events of the past year have raised serious concerns about whether stablecoins can function as money. He noted that stablecoins rely on the credibility of fiat with fewer regulatory protections, which means they cannot ensure the unity of money. “[Stablecoins] do not settle in central bank money or enjoy lender-of-last-resort support,” Carstens said. “Accordingly, they cannot guarantee the singleness of money.” Carstens believes that central bank digital currencies, on the other hand, could “provide safe and stable money.”
Carstens concluded that it is important for today’s financial incumbents, specifically central banks, to contribute to this type of innovation. “If central banks do not innovate, others will step in,” Carstens warned. “In the meantime, we must ensure that stablecoins do not harm investors and consumers, or contribute to a fragmentation of the monetary system that undermines the singleness of money.”
Do you agree with Agustin Carstens’ view that stablecoins cannot guarantee the singleness of money, and that central bank digital currencies are the way forward for safe and stable money? Share your thoughts in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Fidelity Investments Launches Crypto, Metaverse ETFs — Says 'We Continue to See Demand'
Fidelity Investments, one of the largest financial services firms with more than $11 trillion under administration, is launching exchange-traded funds (ETFs) focusing on the crypto ecosystem and the metaverse. "We continue to see demand, particularly from young investors, for access ... read more.
According to Agustin Carstens, the head of the Bank for International Settlements (BIS), cryptocurrencies have lost the “battle” against fiat currencies issued by the world’s central banks. While speaking at the Monetary Authority of Singapore on Wednesday, Carstens stressed that stablecoins are not reliable because they lack the “institutional arrangements and social conventions behind them.”
Agustin Carstens, the general manager of the Bank for International Settlements (BIS), believes that cryptocurrencies have lost the battle against national currencies such as the euro, pound, and yen. Carstens gave a speech at the Monetary Authority of Singapore and was also interviewed by Bloomberg News. The BIS general manager told Bloomberg that the battle between fiat and crypto assets “has been won.” Carstens insisted that technology alone does not make for “trusted money.” The BIS GM added:
Only the legal, historical infrastructure behind central banks can give great credibility to money.
Carstens made similar statements during a speech at the Monetary Authority of Singapore, using stablecoins as an example. He said that there will always be “alternative visions of what a future monetary system and digital money could look like” and added that some cryptocurrency proponents believe stablecoins will be the future of money. The BIS general manager wholeheartedly disagrees because he thinks these proponents forget what sustains fiat currencies.
“What this view forgets is that what sustains fiat money is not the application of novel technologies but all the institutional arrangements and social conventions behind it,” Carstens said. “And it is precisely these arrangements and conventions that make money reliable for the public.”
Carstens detailed that the events of the past year have raised serious concerns about whether stablecoins can function as money. He noted that stablecoins rely on the credibility of fiat with fewer regulatory protections, which means they cannot ensure the unity of money. “[Stablecoins] do not settle in central bank money or enjoy lender-of-last-resort support,” Carstens said. “Accordingly, they cannot guarantee the singleness of money.” Carstens believes that central bank digital currencies, on the other hand, could “provide safe and stable money.”
Carstens concluded that it is important for today’s financial incumbents, specifically central banks, to contribute to this type of innovation. “If central banks do not innovate, others will step in,” Carstens warned. “In the meantime, we must ensure that stablecoins do not harm investors and consumers, or contribute to a fragmentation of the monetary system that undermines the singleness of money.”
Do you agree with Agustin Carstens’ view that stablecoins cannot guarantee the singleness of money, and that central bank digital currencies are the way forward for safe and stable money? Share your thoughts in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Fidelity Investments Launches Crypto, Metaverse ETFs — Says 'We Continue to See Demand'
Fidelity Investments, one of the largest financial services firms with more than $11 trillion under administration, is launching exchange-traded funds (ETFs) focusing on the crypto ecosystem and the metaverse. "We continue to see demand, particularly from young investors, for access ... read more.
Litecoin snapped a four-day losing streak on Feb. 22, despite cryptocurrency markets mostly trading lower. The token rose for the first time since Saturday’s session, when prices were above $100.00. On the other hand, solana extended recent declines, falling by as much as 7%.
Litecoin (LTC) ended a four-day losing streak on Wednesday, as prices moved away from a recent support zone.
LTC/USD rose to an intraday high of $95.36 earlier in today’s session, which comes 24 hours after falling to a low of $92.48.
Since hitting a price floor of $91.50 to start the week, litecoin bulls have somewhat resurfaced.
This has also delayed what many expected to be an inevitable downward crossover, between the 10-day (red) moving average, and its 25-day (blue) counterpart.
Both trend lines now seem to be heading upwards, and this comes as the relative strength index (RSI) also climbed.
The index is now tracking at 50.44, after bulls rejected a breakout of a floor at 49.00.
Solana (SOL), on the other hand, extended recent declines, as the token remained in the red for a second straight day.
Following a high of $25.43 on Tuesday, SOL/USD slipped to a bottom of $23.38 earlier in the session.
On the other side of the spectrum, recent bearish sentiment has risen following a false breakout of a ceiling at $26.50 earlier this week.
This comes as the RSI, which is tracking at 52.58, now looks set to collide with a long-term support point at 50.00.
A glimmer of hope does exist however, with the 10-day (red) moving average crossing over the 25-day (blue) trend line, which is typically a sign of upward momentum.
Should this happen, there is a strong chance that SOL could move beyond a ceiling at $26.50 in the upcoming days.
Register your email here to get weekly price analysis updates sent to your inbox:
Will solana rebound from its recent losses this week? Let us know your thoughts in the comments.
Eliman brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
Litecoin snapped a four-day losing streak on Feb. 22, despite cryptocurrency markets mostly trading lower. The token rose for the first time since Saturday’s session, when prices were above $100.00. On the other hand, solana extended recent declines, falling by as much as 7%.
Litecoin (LTC) ended a four-day losing streak on Wednesday, as prices moved away from a recent support zone.
LTC/USD rose to an intraday high of $95.36 earlier in today’s session, which comes 24 hours after falling to a low of $92.48.
Since hitting a price floor of $91.50 to start the week, litecoin bulls have somewhat resurfaced.
This has also delayed what many expected to be an inevitable downward crossover, between the 10-day (red) moving average, and its 25-day (blue) counterpart.
Both trend lines now seem to be heading upwards, and this comes as the relative strength index (RSI) also climbed.
The index is now tracking at 50.44, after bulls rejected a breakout of a floor at 49.00.
Solana (SOL), on the other hand, extended recent declines, as the token remained in the red for a second straight day.
Following a high of $25.43 on Tuesday, SOL/USD slipped to a bottom of $23.38 earlier in the session.
On the other side of the spectrum, recent bearish sentiment has risen following a false breakout of a ceiling at $26.50 earlier this week.
This comes as the RSI, which is tracking at 52.58, now looks set to collide with a long-term support point at 50.00.
A glimmer of hope does exist however, with the 10-day (red) moving average crossing over the 25-day (blue) trend line, which is typically a sign of upward momentum.
Should this happen, there is a strong chance that SOL could move beyond a ceiling at $26.50 in the upcoming days.
Register your email here to get weekly price analysis updates sent to your inbox:
Will solana rebound from its recent losses this week? Let us know your thoughts in the comments.
Eliman brings an eclectic point of view to market analysis. He was previously a brokerage director and online trading educator. Currently, he acts as a commentator across various asset classes, including Crypto, Stocks and FX, whilst also a startup founder.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Central Bank of Brazil Confirms It Will Run a Pilot Test for Its CBDC This Year
The Central Bank of Brazil has confirmed that the institution will run a pilot test regarding the implementation of its proposed central bank digital currency (CBDC), the digital real. Roberto Campos Neto, president of the bank, also stated that this ... read more.
PRESS RELEASE. With Bitcoin surging to reach a new 2023 high, MX has been the top performer in exchange tokens, with a 7-day growth of 32%.
Bitcoin’s price rising over $25,000 has sparked a frenzy of activity in the cryptocurrency market. With investors flocking to take advantage of the price gains, the trading volume for top exchanges has significantly increased.
As one of the leading exchanges, MEXC announced that its futures business made a significant breakthrough, with an average daily trading volume growth of 1200%.
KEY FACTS
WHAT IS PUSHING THE MX RALLY?
TANGENT
“We never stopped focusing on our customers throughout the general market’s up and down,” said Andrew Weiner, VP of MEXC. “an important part of backing our customers is giving them confidence when they trade, so we’ve reduced our trading fees to the lowest in the market.”
MEXC has recently announced revised fees for trading on its platform. The new fee structure includes a 0% maker fee and a 0.03% taker fee for futures trades. The maker fee for spots is also 0%, with a taker fee of 0.1%.
On average, cryptocurrency trading platforms charge a fee rate between 0.02-0.06%. Following this rate adjustment, MEXC has become the platform with the lowest trading fees across the entire industry. Without a doubt, such competitive price rates are very attractive to most cryptocurrency users.
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
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Argentinian Securities Regulator Launches Innovation Hub to Discuss Regulated Crypto Investments
The National Securities Commission (CNV), which is the Argentinian securities watchdog, recently launched an innovation hub with the goal of advancing conversations about cryptocurrency and fintech investments. This organization will serve as a link between private entities and the institution, ... read more.
Source From : News