The Bank for International Settlements (BIS) has long taken a cautious approach to Bitcoin (BTC) and cryptocurrencies. However, there is no need for caution anymore as the “battle has been won” between fiat and crypto, according to BIS.
BIS general manager Agustín Carstens, who made the claim, highlighted that “technology doesn’t make for trusted money,” among further criticisms of crypto in an interview with Bloomberg.
Crypto has lost the argument that it's an alternative to fiat currency, the head of the Bank for International Settlements says https://t.co/xZKFHEj3b2— Bloomberg Crypto (@crypto) February 22, 2023
As the central bank for central banks, the BIS has emphasized the need for regulation and risk management in the crypto space, but claiming the crypto vs. fiat battle has been won sparked outrage, satire and corrections among the Bitcoin and crypto community.
Ray Youssef, CEO of Paxful and vocal Bitcoin maximalist, told Cointelegraph that it’s “easy to get sucked into these battles but is all a distraction with no ROI.“ 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 now is vital for us all.“
“Want to p*ss the clowns off? Ignore their FUD bait and focus all in on the global south and what is happening on the streets of nigeria.“
Saifedean Ammous, the author of The Bitcoin Standard, brought Carsten’s statement to his followers’ attention, provoking condemnation and concern in the comments. Florida-based Bitcoin advocate SVN (not his real name), whose frozen bank account prompted a switch to go all in on Bitcoin, told Cointelegraph, “these people are clowns.”
Meanwhile, Lady Anarki, a Bitcoin advocate who recently closed a Bitcoin Security Education company, explained that “fiat and crypto are essentially the same exact scam.”
“For fiat, it is nefarious elite oligarchs creating a rigged game system to enrich themselves while making everyone else poorer. Bitcoin is a technology designed with incentives and sound economic principles that enriches anyone who brings value to the world.”
Bitcoin losing the “war” for money, as Carstens explained, is another reference to the fact that Bitcoin has been declared dead, dead and dead again. The 2022 and 2023 bear market is no different, and Bitcoin advocates on Twitter seized the opportunity to mock financial experts dancing on the imaginary grave of the decentralized currency.
Nonetheless, Bitcoin is up over 40% from its 2022 lows, and Lightning Network adoption flourishes while the community appears increasingly vocal.
What Bitcoin Did, the popular podcast hosted by Peter McCormack, tweeted some handy statistics to correct another inflammatory statement published by the BIS this week. Notably, from August 2015 to December 2022, the BIS explained that “nearly all economies made losses on their Bitcoin holdings.”
BIS analysis: Aug ‘15-Dec ‘22 “majority…in nearly all economies made losses on their #Bitcoin holdings”— What Bitcoin Did (@WhatBitcoinDid) February 21, 2023
-Majority of global fiat lost value to USD since 2015
-USD has lost over 26% of its own value due to inflation#Bitcoin has gone up nearly 8000%
Facts be sticky pic.twitter.com/mMyBzuVhWz
As shown, the Bitcoin price continues to trend higher despite the BIS’ best efforts to the contrary.
The BIS has been a vocal critic of cryptocurrencies, citing concerns about their volatility, scalability and energy consumption. However, the BIS has researched stablecoins and spearheads the development of central bank digital currencies in partnership with several countries, juxtaposing Carsten’s comment in the Bloomberg interview that tech “doesn’t make for trusted money.”
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Willem Middelkoop, author and Bitcoin advocate, highlighted that the war between fiat and crypto is far from over. A cursory scroll through the comments on the original tweet from Bloomberg Crypto would suggest that the war is just heating up.