Bank of International Settlements Head Backs CBDC Over Crypto

• In his address in Singapore, though, he did express support for CBDC.
• He advocated for the use of CBDCs and tokenized deposits.

According to Agustin Carstens, the head of the Bank of International Settlements, there is no longer a compelling case for the adoption of digital currency as a replacement for fiat currency.

Technology, Carstens claimed in an interview with Bloomberg TV, could not be relied upon as a reliable means of money. Moreover, the discussion about this topic is now closed. In his address in Singapore, though, he did express support for CBDC.

Creating a Unified Blockchain

Furthermore, according to Carstens, the only thing keeping central banks afloat is their legal and historical legitimacy. This significantly increases the trustworthiness of currencies. He also said the Group of 20 should make a strong statement on the need for more regulation of the digital asset sector. Carstens claims that the cryptocurrency market can only be successful under particular conditions.

He spoke at the Monetary Authority of Singapore and advocated for the use of Central Bank Digital Currencies (CBDCs) and tokenized deposits as ways to increase productivity. He proposed a public-private partnership to create a unified blockchain, where confidence in CBDCs could be bolstered by the central bank.

Moreover, the year 2022 was the worst year for the cryptocurrency sector, plagued with the failure of many large cryptocurrency companies, frauds, and a record number of bankruptcies. In November of last year, the FTX exchange failed, sending shockwaves across the crypto sector. The market is still trying to recover from the enormous explosion, and many people have worries about the reliability of crypto assets because of the tragedy.