The head of the World Bank for International Settlement, Agustin Carstens, once again spoke out against the introduction of digital financial assets. He urged banks not to launch their own stablebcoins, motivating it with a possible decrease in the stability of the global financial system. We see a conflict of interest regarding cryptocurrency in the banking environment.
Established in 1930, BIS is called to coordinate the activities of credit institutions in the global financial arena. Naturally, cryptocurrencies are a direct competitor in carrying out exchange operations. Therefore, it is not surprising that its head constantly collapses with attacks on digital financial assets.
According to the head of the BIS, Agustin Carstensen, “free competition is not the best approach in banking”. He said this during a speech to students of Goethe University when he spoke about the role and possibilities of cryptocurrency.
Agustin Carstens repeatedly called bitcoin bubble and deception. This time, he said that the creation of banking cryptocurrency violates the stability of the entire system. Moreover, it was said that the further development of tokenized payment instruments could lead to financial panic.
Understanding that it is BIS that should coordinate the system of payments between countries leads to important conclusions. The institution simply does not have time for the development of technology and therefore seeks to slow down a direct competitor. There is a conflict of interest around cryptocurrency. There is a confrontation between traditional payment systems and blockchain technology.
Recently, however, the situation has changed radically. One of the most striking examples is shown by the payment operator Visa. It began to recruit staff in the newly opened cryptocurrency unit. And this is done in secret, so as not to attract much attention.
A number of retailers in the United States refused to cooperate with the VISA payment system due to too high deductions. They began negotiations with Ripple Labs to introduce their billing system.
It becomes clear that the conflict of interests around cryptocurrency does not allow payment operators to develop. They cannot openly recognize the benefits of new technologies, but at the same time, there is a risk of skipping ahead of competitors.
The most striking example of a rational attitude to cryptocurrency was demonstrated by JPMorgan Bank. At one time, his head called Bitcoin a bubble, but then changed his point of view. He not only recognized the importance of new technologies. His bank is testing JPM Coin tokens that will be used for interbank settlements.
It is clear that this is a direct competition to the BIS business. The question arises - what is causing some bankers to criticize new technologies right now? Are there existing risks, or a banal conflict of interest?
It is not yet possible to answer these questions. It is already clear that it is cryptocurrency that causes great differences and conflicts of interest. However, progress cannot be stopped; they have proved their viability in practice.