BIS head claims fiat won battle with crypto, Bitcoin community disagrees
The Bank for International Settlements (BIS) has long taken a cautious approach to bitcoin (BTC) and cryptocurrencies. However, according to the BIS, caution is no longer necessary as the “battle is won” between fiat and crypto.
BIS General Manager Agustin Carstens, who made the announcement, stressed that “technology doesn’t make sound money,” amid further criticism of the cryptocurrency in an interview with Bloomberg.
Crypto lost the argument that it is an alternative to fiat currency, says the head of the Bank for International Settlements https://t.co/xZKFHEj3b2
— Bloomberg Crypto (@crypto) February 22, 2023
As a central bank for central banks, the BIS has been emphasizing the need for regulation and risk management in the crypto space, but the announcement that the battle of crypto vs fiat has been won has sparked outrage, satire, and corrections among the bitcoin and crypto community.
Ray Youssef, CEO of Paxful and a vocal bitcoin maximalist, told Cryptooshala that “it’s easy to get caught up in these battles, but it’s all a distraction without cost-benefit.” He continued: “We must focus on the battles in the global south and fight for every inch and every eyeball. What is happening in Nigeria right now is vital for all of us.”
“Want to piss off the clowns? Ignore their FUD lure and focus on the global south and what’s happening on the streets of Nigeria.”
Saifedin Ammos, author Bitcoin Standarddrew the attention of his followers to Carsten’s statement, provoking condemnation and concern in the comments. Florida bitcoin advocate SVN (not his real name), whose frozen bank account prompted the all-in move to bitcoin, told Cryptooshala: “These people are clowns.”
Meanwhile, Lady Anarky, a bitcoin advocate who recently shut down a bitcoin security education company, explained that “fiat and cryptocurrency are essentially the same exact scam.”
“For fiat, they are nefarious elite oligarchs creating a fraudulent game system to get rich by making everyone else poorer. Bitcoin is a technology designed with incentives and sound economic principles that enriches anyone who contributes to the world.”
Bitcoin’s loss in the “war” for money, Carstens explained, is another reference to the fact that Bitcoin has been declared dead, dead and dead again. The bear market of 2022 and 2023 is no different, and bitcoin proponents on Twitter seized an opportunity to mock financial experts dancing on the imaginary grave of a decentralized currency.
However, Bitcoin is up over 40% from its 2022 low and Lightning Network adoption is booming while the community is becoming more active.
What did bitcoin do, a popular podcast hosted by Peter McCormack, has tweeted some useful statistics to correct another inflammatory statement published by BIS this week. Notably, from August 2015 to December 2022, the BIS clarified that “nearly all countries suffered losses due to their bitcoin holdings.”
BIS Analysis: August 15-December 22 “most… in almost all countries suffered losses on their #Bitcoin holdings”
-Since 2015, most of the world’s fiat money has lost its value against the US dollar.
-The US dollar has lost over 26% of its value due to inflation#Bitcoin increased by almost 8000%
Facts will be sticky pic.twitter.com/mMyBzuVhWz
— What did Bitcoin (@WhatBitcoinDid) February 21, 2023
As shown, the price of bitcoin continues to rise despite all the efforts of the BIS to counteract.
BIS has been openly critical of cryptocurrencies, citing concerns about their volatility, scalability, and power consumption. However, BIS has explored stablecoins and is leading the development of central bank digital currencies in partnership with several countries, matching Karsten’s comment in an interview with Bloomberg that the technology “doesn’t make sound money.”
Coinbase rates ‘fundamentally different’ from Kraken rates – chief lawyer
Willem Middelkup, writer and bitcoin advocate, dedicated that the war between fiat and cryptocurrency is far from over. A quick look at the comments on the original Bloomberg Crypto tweet suggests that the war is just heating up.
Credit : cointelegraph.com