BIS Chief Says on Cryptocurrency: ‘Stop Trying to Create Money!’
July 6, 2018 12:25 pm
“Those crazy kids and their bitcoins, when will they ever learn?”
That’s not a quote, but it more or less sums up International banking chief Mr. Agustín Carsten’s thoughts on digital currency both as technological development and an economic pursuit.
Mr. Agustín Carsten, the newly-appointed general manager of the Bank for International Settlements (BIS) the so-called “central bank’s central bank.” is on record as one of the digital currency’s fiercest critics. Before this year, for example, he stated that bitcoin is “a bubble, a Ponzi scheme, and an environmental disaster.”
Speaking in an interview with Swiss German-language newspaper Basler Zeitung, Agustin Carsten repeated that criticism verbatim after which he made an earnest plea to the “young people” promoting it: “Stop trying to create money!”
Even Legendary Scientist Isaac Newton attempted and failed to generate money out of nothing, he stated, and young people should learn from his mistake.
On second thoughts, it’s worth citing Agustín Carstens’ translated comments at length:
“Glance back into the past, and you will see that creating gold or money from nothing has been a regular obsession. It never worked. Even the great physicist Isaac Newton was at one point in his life obsessed by alchemy and the idea of making gold. He was very successful in some fields, but in this one, he failed. Isaac Newton ended up as head of the British Mint. Why? Because he could detect at once if a coin were counterfeit. After he failed in his attempt to make gold, he changed sides and sent impostors to prison. So my message to young people would be: Stop trying to create money!”
The BIS Chief added that he is “worried by the pace of technological progress,” urged young people to dedicate their efforts to better pursuits rather than an asset class that does “not fulfill any of the purposes of money.”
“Young people should use their many talents and skills for innovation, not reinventing money. It’s a fallacy to think money can be created from nothing.”
Somewhere in his remark, Agustín Carstens’ argued contended that central banks are “trusted” and that, at least right now, there is no viable substitute for their role in the world economy. He stated, “I can’t imagine something coming along any time soon that would be more efficient and generate the same level of trust.”
It seems that the “young people,” although, disagree.