"Cryptocurrencies lost the battle against fiat assets" - President of BIS

Agustin Carstens, the President of the Bank for International Settlements (BIS), believes that digital asset technology does not make money more reliable.

"This battle has been won," Carstens said about the superiority of fiat currency in an interview with Bloomberg TV on Wednesday. "The [blockchain] technology does not make money reliable."

The digital asset sector, like a stray dog ​​after a beating by hooligans, is still licking its wounds caused by the $2 trillion market capitalization crash and the collapse of FTX, which created one of the most high-profile cases of corporate crime in US history.

According to the head of BIS, Agustin Carstens, after last year's shocks in the digital asset sector, the argument that cryptocurrencies are an alternative to fiat currency has been exhausted.

It's amusing to see that Agustin chose this particular time period to characterize cryptocurrencies and decentralization in general. It's the same as if Satoshi wrote that fiat is bad, based on examples of hyperinflation of fiat notes in various countries.

But even such a comparison would be more appropriate, as opposed to crypto - notes that depreciate by several percent per year or sometimes even a day, are regulated by the state. And it, in turn, promises stability and takes the lion's share of your profits, which doesn't always go to good things :D.

And if we look at real crypto cases, we can see a huge difference in the behavior of bitcoin compared to gold, comparing the possibility of forging Bitcoin (or rather its impossibility!) and gold, or even fiat. And, of course, the quotes against the backdrop of economic uncertainty.

In short, this list of arguments can be extended for a very long time, but in general, such statements, even from the head of BIS, look quite strange. And if we take the same 2022 year for TradFi, that is, traditional finance, they also had a very tough time.