The debate about the credibility and mainstream acceptance of cryptocurrency ever since Bitcoin rose to fame in 2017 does not seem to have any conclusion. People involved in this discussion presented valid reasons both ‘for’ and ‘against’ the credibility and acceptance of cryptocurrencies. A recent addition to this discussion was the general manager of Bank for International Settlements, Agustin Cartens, who sided with the ‘Asset’ camp.
In an interview with Dallas Fed, Cartens presented his ideas regarding cryptocurrencies and said:
“Bitcoin or Cryptocurrencies in general are interesting… the main issue I take with cryptocurrencies is the term currencies. And i think they are not currencies, they are not good store of value, they are not good medium of exchange, they are not good unit of account. I think the attempt to have them come into life as a way to substitute legal tenders and fiat currency is a failed attempt.”
Cartens supported his argument by giving historical evidence that a number of attempts were made to substitute fiat currencies, but failed. He further added:
“.. they have a role as crypto assets.. they have a room for financial assets in general but not cash”
The general manager of BIS further acknowledged the power of blockchain technology and how it can be used in settlement systems and added that the technology should be embraced and explored to its limits. He gave a concluding statement to his argument by stating:
“Blockchain by itself is not sufficient to think of a different monetary arrangement in a country.”