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Does the name Agustin Guillermo Carstens mean anything to you?
I don't think you're likely to know him. On the other hand, if I show you his photo, there's a good chance you've already seen Memes about him in the Bitcoin or cryptocurrency world:
Memes often present him as the final boss to be beaten to finalize the mass adoption of Bitcoin by the general public.
If Agustin Guillermo Carstens is seen as the final boss, it's because he has been the Managing Director of the Bank for International Settlements since 2017.
Agustin Guillermo Carstens never misses an opportunity to denigrate Bitcoin and cryptocurrencies, the better to promote Central Bank Digital Currencies (CBDCs).
Here's one of his latest quotes on CBDCs:
“With CBDCs, The Central Bank Will Have Absolute Control Over the Rules and Regulations That Will Determine That Use of That Expression of Central Bank Liability and We Will Have the Technology to Enforce That.”
As you can imagine, Agustin Guillermo Carstens works for the central banks and the current system, which he will do anything to protect.
For him, it's all about control and power.
Another equally incredible quote about CBDCs:
“We don't know who's using a $100 bill today and we don't know who's using a 1,000 peso bill today. The key difference with the CBDC is the central bank will have absolute control on the rules and regulations that will determine the use of that expression of central bank liability, and also we will have the technology to enforce that.”
What Agustin Guillermo Carstens wants is the same thing as all the powerful people in today's system: the end of cash, so that we can control the financial transactions of all citizens. At any time, anywhere in the world.
It's a dystopian world, but it's one you'll have to face if you don't make the right choices now to protect yourself. Bitcoin is obviously among your best options in my eyes.
With a General Manager like Agustin Guillermo Carstens at the helm, it's no surprise that BIS released a report in August 2023 entitled “Financial stability risks from crypto assets in emerging market economies
I'll let you take a look at the document here:
https://www.bis.org/publ/bppdf/bispap138.pdf
BIS highlights six good reasons in its eyes to have Bitcoin and cryptocurrencies:
Market risk
Liquidity risk
Credit risk
Operational risk
Bank disintermediation risk
Capital flows risk
For BIS, Bitcoin and cryptocurrencies are dangerous for international financial stability. An unambiguous conclusion that should make you smile if you take the time to check out the cumulative market cap of Bitcoin and the cryptocurrencies...
This market cap is just over $1T.
Not enough to threaten the stability of a current system that weighs far more and is, above all, flawed and not fixable. But of course, bad faith is part of BIS's game to scare off the general public.
To protect against the dangers of Bitcoin and cryptocurrencies, BIS recommends the implementation of CBDCs. In the eyes of BIS, CBDCs are the best option for preventing the financial chaos predicted for the world in the future.
Of course, BIS doesn't mention the dangers to privacy posed by CBDCs.
Logical, since the BIS report was drafted by a working group drawn from the central banks of the American continent. It includes the central bankers of Argentina, Brazil, Canada, Chile, Colombia, Mexico, Peru, and the United States, under the direction of a triumvirate consisting of Andres Murcia, Anna Kovner, and Alexandre Tombini.
The 51-page BIS report could be summed up in this single sentence from the report itself:
“There were serious concerns about their ability to monitor cryptoasset markets and to assess the channels through which vulnerabilities in cryptoasset markets could give rise to financial stability risks in the traditional financial system.”
For BIS, the major problem linked to Bitcoin and cryptocurrencies would therefore be the contagion of any turbulence in this market to the traditional economy. The BIS specialists have listed six likely consequences for traditional markets, which we'll look at together.
Each specificity of the Bitcoin and cryptocurrency market is linked to a potential consequence on the traditional financial system, as can be seen in the diagram above.
First of all, there's the volatility of crypto prices, which could pose a major risk to the traditional market. Then there's the very structure of the crypto sector, where high leverage could create a damaging lack of liquidity.
Continuing to turn counter-clockwise on the chart, there's the replacement of historic currencies by cryptocurrencies, which could weaken the banking sector in favor of obscure international exchanges that would come to take their place.
In fourth place, operational risks are highlighted by the expert group. These correspond to the very fragilities of the crypto sector, where individuals, companies, or systems could fail, and this could impact the traditional sector through a contagion effect.
In the same vein, the sector's high degree of centralization in the hands of a few players is also a potential crisis risk. The capital reserves of stablecoin issuers, for example, are a source of concern, as a major default could have catastrophic consequences.
Finally, the lack of transparency on the part of these same major platforms poses a problem for BIS experts, who take a dim view of the importance taken on by these giants.
The document also details all the transmission mechanisms and risk catalysts. And as a final warning, the authors recommend being wary of the idea that is starting to circulate that “cryptocurrencies are a refuge from volatile national currencies”.
I'll let you make up your mind about this BIS report, but for my part, it only reinforces my opinion that the powerful in the current system will do anything to get the people to think that CBDCs are their best option for a less risky future in terms of global finance.
A blatant lie that those who have already understood why Bitcoin exists will see coming a long way off. From then on, their conviction that Bitcoin is their best option will only grow stronger.
For the rest of us, it's probably time to wake up and open our eyes to what awaits us in the future: a cashless mass surveillance society, where CBDCs will enable their governments to scrutinize our every move.
The choice is yours.
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