Agustin Karstens, Secretary General of the Bank for International Settlements (BIS) visits the Ministry of Strategy and Finance in 2018. Hankyung DB
“Bitcoin is fundamentally dangerous. Digital currency (CBDC) should only be issued by central banks.”
This is the argument made by Agustin Karstens, Secretary-General of the International Bank for Settlements (BIS), an international financial institution that sets standards for assessing the soundness of banks. “Sound currency is the heart of the market economy, and only central banks can supply sound currency,” he said.
According to Bloomberg News, Secretary General Karstens gave a lecture at the Hoover Institute on the 27th (local time), saying, “The bitcoin supply is approaching the maximum of 21 million coins.” “The fact that bitcoin is vulnerable to major attacks and may completely collapse “Investors should know.”
He pointed out that the’stable coin’, which is designed so that the price volatility is not large, also has problems. This is because private companies are responsible for governance issues and maintaining asset support. Representative stablecoins such as’DM (formerly Libra)’, a cryptocurrency led by Facebook. “If digital currency is needed, central banks should issue it,” said Karstens.
This is a passage that shows that’orthodox financial men’ still have a lot of doubts about cryptocurrency.
“Is there any cryptocurrency that has reached design, management and preparation? Honestly, there is no such cryptocurrency, and it does not fit the formula.”
Andrew Bailey, governor of the British Central Bank, Bank of England, also argued that cryptocurrency is an unstable structure. At the Davos Forum meeting on the 25th (local time), Governor Bailey said, “All questions about whether virtual currency can be a means of payment with stable value is the question of whether banks can view virtual currency as fiat money.” Said.
According to the results of a survey conducted by the BIS of 65 central banks, central banks representing a fifth of the world’s population are likely to issue their own CBDCs within three years. 86% of the surveyed said they were analyzing the strengths and weaknesses of CBDC. The Bank of England and the Bank of Korea are among them.
However, it was found that central banks in developing countries are more likely to issue CBDCs than developed countries. Only 20% of central banks in developed countries said “CBDC issuance is possible” in the short or medium term. On the other hand, 60% said “I don’t think it’s going to be published”, and 25% said “I don’t have the authority to issue CBDC.”
Reporter Lim Hyun-woo [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution