Agustin Carstens, the head of Bank of International Settlements (BIS), warned again that central banks should not give up the role of guardians of the global financial system in favor of cryptocurrencies.
The warning was delivered in a speech delivered at Princeton University. According to Bloomberg, the head of BIS has associated digital currency projects with “bright skyscrapers”. By comparison, central banks are reliable providers of global financial infrastructure.
The crypto community has repeatedly stressed that the current financial system disadvantages many people.
Agustin Carstens, like many leaders in the financial system, has a history of anti-crypto views. At the beginning of his tenure, Carstens called on regulators to adopt stricter laws to govern the crypto ecosystem.
This year, however, his comments have received an urgent note, especially after the publication of the Libra whitepaper. Carstens urged central banks to issue their own digital currencies:
“We have a responsibility to be the leaders in this debate. There is really no option but to do it, otherwise the events will surpass us. “
Central banks support CBDC
Several central bank leaders have supported the idea of launching CBDCs to maintain their influence in economic systems. The European Central Bank (ECB) is studying how to use digital currencies. China is also another country interested in creating a national digital currency.
Meanwhile, US Treasury Secretary Steve Mnuchin said the Federal Reserve does not plan to create a digital dollar in the near future.
However, 2020 could be the year in which a competition between CBDCs issued by central banks will be launched.