The Bank of International Settlements (BIS) is an international body involved in regulating different aspects of international finance. BIS General Manager Agustin Carstens recently delivered a speech titled Digital currencies and the Soul of Money. His speech is representative of everything that is wrong with the global banking system and centralization as a whole. In his speech, Carstens spoke at length about the pitfalls of Decentralized Finance, digital ledgers, stablecoins, and other crypto community as a whole. However, his speech also makes it more evident that the international monetary system needs to change for the greater good. The present model gives disproportionate authority to people in positions of power, including Agustin Carstens. Many leaders of nations and institutional authorities have spoken against crypto time and again, only to prove its need in the modern world.
The core of Carsten’s argument was that since central banks are not profit-driven, they can serve the world without any implicit motive. However, geopolitical tensions and conflicts have repeatedly shown that central banks and governments can go to any extent to protect their own interests. In many cases, that means going against the very citizens they claim to serve.
Carsten also claimed that there is a lot of centralization in DeFi. While there is truth to the claim, it highlights the fact that even he acknowledges the pitfalls of centralization while endorsing the same. As soon as the speech came into the spotlight, the crypto community started to express their disapproval of Carsten. However, the crypto space cannot deny that the BIS is a very powerful entity and will dictate the development of digital assets to a great extent.