Content adapted from this Zerohedge.com article : Source
The head of the Bank for International Settlements, Agustin Carstens, gets it.
He realized that bitcoin is a threat to the established banking system. Unlike many other central bankers who voice a mild approach, Carstens is calling for the banking system to active pre-emtively.
"If authorities do not act pre-emptively, cryptocurrencies could become more interconnected with the main financial system and become a threat," he said.
"Most importantly, the meteoric rise of cryptocurrencies should not make us forget the important role central banks play as stewards of public trust..."
Carstens is using pulling out the usual mantra about bitcoin, that it is used to buy drugs or is a ponzi scheme.
"Bitcoin is not functional as a means of payment, but** it relies on the oxygen provided by the connection to standard means of payments and trading apps that link users to conventional bank accounts**," Carstens said in Frankfurt on Tuesday.
"If the only 'business case' is use for illicit or illegal transactions, central banks cannot allow such tokens to rely on much of the same institutional infrastructure that serves the overall financial system and freeload on the trust that it provides."
He realizes that bitcoin is something they can not control.
Non-adapted content of this Zerohedge.com article: Source
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