The Bank of International Settlements (BIS) chief, Augstin Carstens, is in the news for the surprising U-turn he has taken on the issue of digital currencies. In an interview with the Financial Times newspaper on June 30th, Carstens came out in support of the digital versions of paper currencies that was planned by many countries.
Carstens said that many central banks were working on this proposal, and the (BIS) were also working on it and actively supporting the central banks. This statement is a U-turn compared to his well-known stance opposing digital currencies.
Hardly a few months back in March, Carsten has made a statement opposing the plan of creating digital versions of paper currencies. In a speech made in Dublin, Carstens had publicly advised against the idea of central bank digital currencies. He had remarked that innovation should not come so fast.
Carstens has in the past referred to bitcoins as a combination of bubbles, a Ponzi scheme and termed it an environmental disaster. He has even called upon central banks to regulate cryptocurrencies to prevent them from becoming a part of the banking system. Commenting on Facebook’s proposed Libra cryptocurrency, the BIS had called it a risk for the banking sector.
With BIS and Carstens having opposed cryptocurrencies and the plan for digital versions of currencies, it is surprising to note the sudden change in stance. Having opposed central bank digital currencies in March, for him to be now openly supporting it is a major U-turn. Perhaps this is a harbinger of things to come.
In fact, in his interview to the Financial Times, Carstens even went on to say that there would be a market for central bank digital currencies very soon and that there is a need to provide such currencies. This reversal of stance has proved to be an interesting development.
Gustavo Fonseca loves anything digital and crypto-related which makes him sit up and pay attention. He got into the world of digital marketing and business digital transformation career in 2010. Some time later he got into Crypto, a dynamically developing segment at the intersection of the financial services and technology. Gustavo joined TheDailyCoins in September 2018.