BIS general manager Agustín Carstens reckons the war between fiat and crypto has been won by fiat. The community disagrees.
The Bank for International Settlements (BIS) has long taken a cautious approach to Bitcoin and cryptocurrencies.
However, there is no need for caution anymore as the “battle has been won” between fiat and crypto, according to BIS.
“A few years ago, crypto assets and cryptocurrencies have been put as an alternative to fiat money,” Carstens, Head of the BIS, told Bloomberg in an interview posted Wednesday (Feb. 22). “That battle has been won.”
BIS general manager Agustín Carstens, who made the claim, highlighted that “technology doesn’t make for trusted money,” among further criticisms of crypto in an interview with Bloomberg.
Separately, in a speech given in Singapore that same day, Carstens noted that distributed ledger technology (DLT) can lead to new payments technologies and use cases.
And in a nod to the convergence of bank infrastructure, credibility and technologies, he noted that there’s a place for central bank digital currencies (CBDCs) and for tokenized deposits.
“CBDCs and tokenized deposits would appear in separate partitions in the unified ledger.
Because they share a common ledger, they can be brought together and used in an efficient way, through smart contracts,” said Carstens — where CBDCs play the same role as central bank money, tokenized deposits are commercial bank money.
Ray Youssef, CEO of Paxful and vocal Bitcoin maximalist, told Cointelegraph that it’s “easy to get sucked into these battles but is all a distraction with no ROI.“
He continued, “We must focus on the battles in the global south and fight for every inch and every eyeball. What is happening in Nigeria now is vital for us all.“
Source {CNN}
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