Head of Bank of International Settlements Pans Cryptos

By Bill Taylor, Contributor

The head of the Bank of International Settlements (BIS), Mr. Agustin Carstens, is out and about warning that cryptocurrencies will bring about the end of civilization and the world as we know it. OK, not EXACTLY that, but he is ‘talking trash’ on cryptos. In his words cryptocurrencies are “a Ponzi scheme, a bubble and an environmental disaster” (I don’t get that last one). This is interesting since former senator and presidential candidate Ron Paul has just called for, once again, a combination of a cryptocurrency and gold to SAVE the world from central bankers and their monetary mismanagement. Boy, how much fun would it be to put these two on a cable news “talk off”.

Returning to Mr. Carstens point, he does not buy into the theory that cryptocurrencies have had a positive effect and revolutionized the way younger people think about money. And, perhaps, how younger people view fiat currencies and central bank polices in general. To quote;

“Young people should use their many talents and skills for innovation, not reinventing money. It’s a fallacy to think money can be created from nothing. Glance back into the past and you will see that creating gold or money from nothing has been a regular obsession. It never worked……so my message to young people would be to stop trying to create money!”

Now, to be fair and unbiased, if the new blockchain technology that makes cryptocurrencies viable (and never existed before) actually DOES change how money is transacted……….well, Mt Carstens would be out of a job. So would all the global central bankers. Their power all gone. (Damn, there goes the fancy worldwide meetings, private jets, country clubs, etc etc) Could it be the Bank of International Settlements and Mr Carstens have a bias and agenda? Trash talking the competition doesn’t make it go away. I’m thinking former senator Ron Paul is more looking forward, not backward.

Bill Taylor is Managing Partner at Fintek Capital & a frequent contributor to FintekNews