BIS General Manager Doesn’t Want Cryptocurrencies to Join Main Financial System

Augustín Carstens, managing director of

Bank for International Settlements(BIS), created Bitcoin “the combination of the bubble, the Ponzi scheme, and an environmental catastrophe.” asked them to examine and arrange their units more closely.

Ponzi Game or Ponzi Order, (English: Ponzi Scheme) is a scam method where investors are paid with their own money back or money from subsequent investors. “

BIS, known as “the bank for central banks”. Because it only provides banking services to central banks and other international institutions.

Carstens, in August 2017, Central Bank of Mexico‘ At the beginning of the year, he said that Bitcoin is a commodity, not a currency, and warned against its use for potential cybercrime.

Carstens‘s latest comments comes after both traditional and crypto markets have suffered a massive drop since Monday 5th February. Also this week, Lloyds Banking Group and J.P.. Several major banks, including Morgan Chase, have banned credit card purchases of cryptocurrencies.

Carstens‘s view is that the global interest in cryptocurrencies is only “a speculative mania”. This is why strict regulation by central banks is needed.

“If authorities do not take action in advance, cryptocurrencies can become more interconnected with the main financial system and pose a threat to financial stability.”


Carstens that some banks Bitcoin ATMs allow such a situation “worrying” evaluates as. Because he found the potential use of Bitcoin in illegal transactions to be too high to be allowed to be associated with major financial institutions, he said:

“The only commercial aspect “is illegal Transactions and money laundering etc.” cannot be allowed to be incorporated by central banks into such an institutional infrastructure that serves the financial system and undermines the trust it provides.”

Defense of Democracies and Elliptic, a legal Bitcoin review company, reported that as of late January, only 1% of Bitcoin transactions > has published a report showing that it is used in money laundering.

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