The Bank for International Settlements (BIS) has long taken a cautious approach towards Bitcoin (BTC) and cryptocurrencies. However, there is no need to be cautious anymore, as the โbattle has been wonโ between fiat and crypto, according to BIS.
The general manager of the BIS, Agustรญn Carstens, who made the claim, highlighted that "technology does not generate reliable money", among other criticisms of cryptocurrencies in an interview with Bloomberg.
Crypto has lost the argument that it is an alternative to fiat currency, says the director of the Bank for International Settlements https://t.co/xZKFHEj3b2
โBloomberg Crypto (@crypto) February 22, 2023
As the central bank of central banks, the BIS has emphasized the need for regulation and risk management in the crypto space, but claiming the fiat battle was won sparked outrage, satire, and corrections among the Bitcoin and crypto community.
Ray Youssef, CEO of Paxful and vocal Bitcoin maximalist He told Cointelegraph that it's "easy to get sucked into these battles, but it's a distraction with no return on investment." He continued: "We must concentrate on the battles in the global south and fight for every inch and every eyeball. What is what is happening in nigeria now is vital for all of us."
"Do you want to piss off the clowns? Ignore their FUD bait and focus on the global south and what's happening on the streets of nigeria."
Bitcoin author Saifedean Ammous brought the BIS history to the attention of his followers, causing repudiation and concern in the comments. Florida-based Bitcoin advocate called SVN (not his real name), whose frozen bank account caused a switch to bet on Bitcoin, told Cointelegraph that "These people are clowns."
Meanwhile, Lady Anarki, a Bitcoin advocate who recently shut down a Bitcoin security education company, explained that "fiat and crypto are essentially the same scam."
โTo fiat, they are nefarious elite oligarchs creating a rigged game system to enrich themselves while impoverishing everyone else. Bitcoin is a technology designed with incentives and sound economic principles that enriches anyone who adds value to the world.โ
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. 2022 and 2023 bear market is no different, and Bitcoin advocates in Twitter took the opportunity to mock financial experts by dancing on the imaginary grave of decentralized currency.
Nonetheless, Bitcoin has risen 40% from its 2022 lowsand lightning Network adoption flourishes while the community seems increasingly vocal.
What Bitcoin Did, the popular podcast hosted by football club owner Peter McCormackโnumber 38 in Cointelegraph Top 100โtweeted some useful stats to correct another inflammatory statement published by the BIS this week. Notably, from August 2015 to December 2022, the BIS explained that "almost all economies suffered losses on their Bitcoin holdings."
BIS Analysis: Aug '15-Dec '22 "most... in almost all economies had losses on their #Bitcoin holdings"
Facts:
-Most global fiat has lost value against the USD since 2015
-USD has lost more than 26% of its own value due to inflation#Bitcoin It's up almost 8000%facts are sticky pic.twitter.com/mMyBzuVhWz
โ What Bitcoin Did (@WhatBitcoinDid) February 21, 2023
As shown, the Bitcoin price continues to trend higher despite the best efforts of the BIS to the contrary.
The BIS has been a vocal critic of cryptocurrencies in the past, citing concerns about their volatility, scalability, and power consumption. However, the BIS has also investigated stablecoins and central bank digital currencies, juxtaposing Carsten's comment in the Bloomberg interview that technology "doesn't make reliable money."
Related: Coinbase's Bets Are 'Fundamentally Different' Than Kraken's: Lead Counsel
Willem Middelkoop, Author and Bitcoin Advocate, highlighted that the war between fiat and crypto is far from over. A cursory offset in the original Bloomberg Crypto tweet would suggest that the war is only heating above.
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