BIS Head Calls for Global Crypto Regulation
February 7, 2018
Cryptocurrency market cap has dropped thrice over the last month. The head of the Bank for International Settlements Agustín Carstens believes this to be a pervasive problem threatening financial solvency and calls all countries for joining efforts and establishing international cryptocurrency regulation.
Carstens claimed, Bitcoin has turned into a blend of bubble and environmental incident and may shake the people’s confidence in traditional banking system.
“If authorities do not act pre-emptively, cryptocurrencies could become more interconnected with the main financial system and become a threat to financial stability”, Carstens said in the course of his speech at Goethe University in Frankfurt, Germany.
Mexico’s Central Bank ex-President asserts, despite manifold Bitcoin rate growth cryptocurrencies just pretend to be actual currencies and are in fact insecure as they allow for evading taxes, money laundering and financing criminals.
“There is a strong case for policy intervention. Appropriate authorities have a duty to educate and protect investors and consumers, and need to be prepared to act”, he added.
As Carstens, central banks must give an eye to correlations between crypto and fiat currencies to eliminate the risk of “parasitism”.
The BIS is an international organization maintaining interaction of countries’ central banks and facilitating cross-border financial arrangements.
Let us recall that large commercial banks like Bank of America, JPMorgan Chase and Citigroup have prohibited its customers acquiring cryptocurrency with credit cards recently.