The Bank for International Settlements (BIS) remains skeptical of Bitcoin, echoing the sentiments of many traditional banking institutions.
BIS, which oversees central banks around the world, may be open to exploring central bank digital currencies (CBDC), but diving into Bitcoin as an investment may be taking it a step too far. General Manager at BIS, Agustin Carstens, gave a speech for the Hoover Institution at Stanford University and explained his distrust in Bitcoin’s value. As shared by Bloomberg, he said:
“Investors must be cognizant that Bitcoin may well break down altogether, because the system becomes vulnerable to majority attacks as it gets close to its maximum supply of 21 million coins.”
Carstens therefore classified Bitcoin as “inherently risky.” According to the General Manager, stablecoins may not be any better either, as he said they may raise “governance issues,” seeing as they were maintained by a private entity. Stablecoins refer to virtual…