Bank of International Settlements Chief Says Cryptocurrencies Being Used to Evade Laws- Advocates for More Regulation

26 March 2021

Agustin Carstens, the general manager at the Bank of International Settlements (BIS), has claimed that cryptocurrencies are “used to evade laws and should therefore face more regulation.” Carstens, who has attacked bitcoin in the past, suggests that many crypto assets are “used to do some arbitrage, or to circumvent some regulations.”

Carstens Repeats the Same Arguments

Speaking during an interview, the BIS general manager also claims that “laws against money laundering and the financing of terrorism were absent in many applications of some cyber currencies.” Still, despite this ongoing opposition by global regulators and central banks, the use of crypto assets like BTC as a means of payment or as a store of value continues to grow. Also as News previously reported, cryptocurrency use surged in 2020 with more mainstream organisations now holders of mainly BTC.

However, despite mounting evidence that suggests otherwise, Carstens, who is a prominent BTC opponent, continues to deny that cryptocurrencies are being used as an alternative to fiat cash. He also repeats the claim that cryptocurrencies are primarily used as a “speculative vehicle.” Furthermore, to support his negative disposition towards cryptocurrencies, Carstens added:

I don’t see any dominance of cyber currencies (and they have not had) any inroads in terms of working as money.

Also, the BIS general manager similarly dismisses claims that stablecoins, which he says “have some limited applications”, represent a threat to sovereign currencies.

Renewed Push Against Cryptos

Meanwhile, Carstens’ latest attack on cryptocurrencies appears to have coincided with the recent pushback against cryptocurrencies by the US Federal Reserve chief as well as the Financial Action Taskforce (FATF)’s announcement of its revised virtual assets guidelines.

However, despite this significant opposition, more businesses are adding or are contemplating cryptocurrencies to customer payment options. For instance, Tesla’s Elon Musk recently said the company would now accept BTC as payment for its electric cars. On the other hand, software giant Microsoft is asking its Xbox customers if they are amenable to buying the product using cryptocurrency.

What are your thoughts on Carstens’ latest remarks about cryptocurrencies? Tell us what you think in the comments section below.

Leave a Comment