The well-known Mexican bankster and financial guru Agustin Carstens sees bitcoin as a threat and wants young people to stay away from it.
Agustin Carstens is the general manager of the Bank of International Settlements. In a recent interview published by the BIS, the Mexican economist referred to the dangers of bitcoin, saying that it was “a bubble, a Ponzi scheme, and environmental disaster.”
The economist clearly feels threatened by this new technology and wants to see it banned. In the interview, he revealed that he believes cryptocurrency poses significant dangers to the current financial and banking model but wasn’t able to find new arguments against the booming market.
During the interview, Carstens admits that the development and adoption of cryptocurrency is a significant concern to the economy as a whole, in an obvious fear manifestation that the development of peer-to-peer, decentralized currency could crush the central-banking cartel.
“Young people should use their many talents and skills for innovation, not reinventing money. It’s a fallacy to think money can be created from nothing. Glance back into the past, and you will see that creating gold or money from nothing has been a regular obsession. It never worked. So my message to young people would be: Stop trying to create money!”
Carstens argued that digital currencies, like Bitcoin, could not function as a legitimate currency as they do not have the features needed to be considered as currency. He went on saying that the way these tokens are issued is irrational and is leading to an environmental disaster because of the insane energy spending in crypto-mining. Moreover, the Mexican financial whale said that this was nothing more than money issued out of nothing as if central banks didn’t print money out of thin air.
In the interview “San Agustin” as dubbed in the conversation’s first sentence, was asked a series of questions on his view of financial tech. When asked about his position on the impact bitcoin is having on younger generations the bankster said that young people should stay away from bitcoin.
On a Steemit post, Jeff Berwick said that Carstens position reveals that traditional financial gurus are very concerned with the impact of cryptocurrencies and feel threatened by the technology as they do not understand it. Berwick goes on saying that this is primarily a reaction from the traditional financial establishment against the disruptive power of the blockchain.
“I’m concerned by the pace of technological progress. In principle, it’s a positive thing. However, when innovation hurdles ahead, it can be destructive, for workers in particular. The challenge lies in using innovation to our advantage while containing the damage it causes. Here I’m thinking, for example, of the impact of information technology in finance – fintech – on, say, the business models and ultimately the stability of banks and other financial institutions.”
Berwick calls Carstens statements an act of despair as he seems to know that cryptocurrencies have the potential to make the current banking and financial systems obsolete and return the power to the people. The author of Dollar Vigilante concludes that the constant FUD draining from traditional economists is a shred of evidence that cryptocurrencies are winning the war.