Crypto Is Not A Viable Alternative To Fiat Currency, Says Economist Agustin Carstens

The recent upheaval in the digital-asset sector has argued that while cryptocurrencies are a viable alternative to fiat currency, the technology is not a substitute for “reliable” money, according to the Bank for International Settlements. agustin carstens,

“That battle has been won,” Carstens said. “A technique doesn’t make for dependable money.”

Crypto industry grapples with $2 trillion in losses and collapse Sam Bankman-Friedof FTX exchange in November 2022.

See also: It is the first unit to return FTX unit depositor funds

As a result, claims that tokens can be reliable stores of value and mediums of exchange have been undermined.

For example, Bitcoin BTC/USD 65% drop from 2021 high of around $69,000 to $24,150.

Carstens stressed that the only way to establish great credibility for money is through the legal and historical infrastructure behind central banks, adding that he is “from the Group of 20″ about stricter regulations for digital-assets. Strong statement is expected”. Area,

He believes that crypto is a financial activity that can only exist “under certain conditions”.

See also: Exclusive – BitPay Partners with ZenLedger to Streamline Cryptocurrency Tax Reporting

Carstens spoke at the Monetary Authority of Singapore about how central bank digital currencies (CBDCs) and tokenized deposits can increase efficiency.

He recommended a model of an integrated blockchain under a public-private partnership, in which a central bank provides trust in a CBDC.

Carstens also addressed private sector stablecoins, stating that regulators must ensure they do not harm investors and consumers or fragment the monetary system.

Stablecoins are crypto tokens that are supposed to maintain a set value, such as $1, but some have exploded, causing investors to lose money.

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