Recently, we have seen many people who have been calling the cryptocurrency system a ponzi scheme but later, diverting words and even supporting the new technology as they discover more and more records of progress in the crypto world. This his not been the case for bank of international settlement(BIS) as they stood their ground while criticizing the new tech. In other words, the institution has never been a fan of cryptocurrency.
Not too long ago, about 2 weeks back, this same company talked about why cryptos are a poor substitute for the traditional banking system, now they are directly pouring it to the face of everyone, saying, “Cryptos are no different from Ponzi Schemes”. Their CEO, Agustin Carstens said that cryptos will have a bad ending and that bad ending is very near, he also urged young individuals to channel their focus on innovations that will truly add impact to their economy rather than been focused on how to reinvent money.
Carstens is a man well-known for the tremendous experience he has acquired from the financial industry for some decades now. He was also a one-time minister of finance in his native country, Mexico. He even experienced the financial crises that almost took Mexico, as a whole but he still remains firm with his critique on cryptocurrency.
When asked to backup his statement made in an interview with Swiss newspaper Basler Zeitung, he for the second time, referred to cryptos as not money but rather a form of investment. He also said that crypto does not in any way fulfill the 3 purposes of money which are: means of payment, store of value and good unit of account. He added that crypto were only popular because people made a lot of money from it in a short period of time and this quick profits blinded their eyes and kept them from realizing that cryptos were, in a nutshell, “a bubble, a Ponzi scheme and an environmental disaster.”
He concluded his argument by saying that cryptos are bad but the blockchain technology that underpins them is good. Now having made this statement here, I can simply say that his argument or perceptions about crypto is baseless. Having said bad about crypto, he shouldn’t have called what underpins it “good” because nothing else would have existed on top of the blockchain technology system if not crypto, or does he also wants to build his own banking system on the blockchain technology he referred to as “good”? Only time will tell if this man is right or wrong.
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