BIS: the Digital currency could threaten financial stability
Central banks need to prepare for the containment of the risks associated with digital currencies as bitcoin has become a “combination of bubble, pyramid schemes and natural disasters,” said Tuesday the head of the Bank for international settlements (BIS), Agustin Carstens.
This warning indicates that the authorities are moving toward adopting strict measures against digital currencies amid fears that they could undermine the foundations of the financial system as a whole.
“There is good reason for government interference,” said Carstens.
In recent weeks, many Central banks have issued warnings about the digital currency amid rise in their rates to record highs and steep drops. Monday during volatile trading bitcoin fell below the $ 7,000, losing about two thirds of its value relative to the December peak, exceeded 19 000. In the last days of fall and other digital currencies.
ECB President Mario Draghi said Monday that the digital currency should be regarded as “very risky assets”, and added that the Central Bank is studying, with associated risks for banks in the Eurozone.
“If the authorities fail to take preventive measures, cryptocurrency can become more integrated with the core financial system and threaten financial stability,” said Carstens.