Digital currencies vs national currency

 Head of the Bank for International Settlements: Digital currencies have lost the battle against the national currency.

Digital currencies vs national currency
Digital currencies vs national currency

In an interview with Bloomberg news agency on Wednesday evening, the head of the Bank for International Settlements, Agustin Carstens, stated that the current conditions of the digital currency market put an end to the controversy regarding the possibility of digital currencies replacing the real national currency, especially after the sharp collapses that even the largest digital currencies, and even stable ones, were exposed to. .

The President of the Bank for International Settlements explained during the interview that these events in the digital currency market have settled the battle in favor of the national currency against digital currencies, stressing that technology and digital currencies do not achieve reliable profits, especially in light of the continued enactment of new and unexpected laws on them by governments.

Carstens confirmed his words, saying that only the legal and historical infrastructure behind the currencies of central banks can give great credibility to money and make them reliable investments, and indicated that he expects a strong statement from the G20 meeting to enhance regulation of the asset market and digital currencies, because digital currencies A financial activity can only really exist under certain conditions.

Speaking previously at the Monetary Authority of Singapore, Carstens said central bank digital currencies, GBDCs, and token deposits can help improve efficiency, and proposed a standardized blockchain model in a public-private partnership, whereby the central bank supports trust in banks' digital currencies. central.

Carstens touched on stablecoins for the private sector, and explained that he believes that government regulators should include stablecoins in the unified blockchain model, noting that they do not harm investors and consumers, as well as that they will not cause fragmentation of the global monetary system or any other disturbances.

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