{"id":17966,"date":"2023-02-22T19:16:35","date_gmt":"2023-02-22T19:16:35","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bis-general-manager-casts-doubt-on-stablecoins-claiming-tokens-do-not-benefit-from-regulations-or-central-planning-bitcoin-news\/"},"modified":"2023-02-22T19:16:35","modified_gmt":"2023-02-22T19:16:35","slug":"bis-general-manager-casts-doubt-on-stablecoins-claiming-tokens-do-not-benefit-from-regulations-or-central-planning-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bis-general-manager-casts-doubt-on-stablecoins-claiming-tokens-do-not-benefit-from-regulations-or-central-planning-bitcoin-news\/","title":{"rendered":"BIS General Manager Casts Doubt on Stablecoins, Claiming Tokens Do Not Benefit From Regulations or Central Planning \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
\n<\/p>\n

\n
\n<\/header>\n
\n\n<\/div>\n

According to Agustin Carstens, the head of the Bank for International Settlements (BIS), cryptocurrencies have lost the \u201cbattle\u201d against fiat currencies issued by the world\u2019s central banks. While speaking at the Monetary Authority of Singapore on Wednesday, Carstens stressed that stablecoins are not reliable because they lack the \u201cinstitutional arrangements and social conventions behind them.\u201d<\/strong><\/p>\n

Agustin Carstens Insists Cryptocurrencies Lost the \u2018Battle\u2019 to Fiat Currencies<\/h2>\n

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<\/a> at the Monetary Authority of Singapore and was also interviewed by Bloomberg News. The BIS general manager told<\/a> Bloomberg that the battle between fiat and crypto assets \u201chas been won.\u201d Carstens insisted that technology alone does not make for \u201ctrusted money.\u201d The BIS GM added:<\/p>\n

\n

Only the legal, historical infrastructure behind central banks can give great credibility to money.<\/p>\n<\/blockquote>\n

\u2018Stablecoins Cannot Guarantee the Singleness of Money\u2019<\/h2>\n

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 \u201calternative visions of what a future monetary system and digital money could look like\u201d 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.<\/p>\n

\u201cWhat 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,\u201d Carstens said. \u201cAnd it is precisely these arrangements and conventions that make money reliable for the public.\u201d<\/p>\n

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. \u201c[Stablecoins] do not settle in central bank money or enjoy lender-of-last-resort support,\u201d Carstens said. \u201cAccordingly, they cannot guarantee the singleness of money.\u201d Carstens believes that central bank digital currencies, on the other hand, could \u201cprovide safe and stable money.\u201d<\/p>\n

Carstens concluded that it is important for today\u2019s financial incumbents, specifically central banks, to contribute to this type of innovation. \u201cIf central banks do not innovate, others will step in,\u201d Carstens warned. \u201cIn 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.\u201d<\/p>\n

\n
\nTags in this story
\n<\/h6>\n
Agustin Carstens<\/a>, Bank for International Settlements<\/a>, BIS<\/a>, Bitcoin<\/a>, Bloomberg News<\/a>, central bank digital currencies<\/a>, Central Banks<\/a>, Consumers<\/a>, credibility<\/a>, crypto assets<\/a>, crypto economy<\/a>, Cryptocurrencies<\/a>, Ethereum<\/a>, Euro<\/a>, fiat currencies<\/a>, Financial Incumbents<\/a>, fragmentation<\/a>, future of money<\/a>, Innovation<\/a>, institutional arrangements<\/a>, Investors<\/a>, legal infrastructure<\/a>, lender-of-last-resort<\/a>, Monetary Authority of Singapore<\/a>, national currencies<\/a>, pound<\/a>, regulatory protections<\/a>, safe money<\/a>, singleness of money<\/a>, social conventions<\/a>, Stable Cryptos<\/a>, stable money<\/a>, Stablecoins<\/a>, trusted money<\/a>, unity of money<\/a>, yen<\/a><\/div>\n<\/div>\n

Do you agree with Agustin Carstens\u2019 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.<\/strong><\/em><\/p>\n

\n
\n\n<\/div>\n
\n
\nJamie Redman <\/h6>\n

\nJamie 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.

\n
\n
\n<\/a>
\n<\/span>\n<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

\n

Disclaimer<\/strong>: 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<\/a> 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.<\/p>\n<\/div>\n

\n