Money in the digital age: what role for central banks

General Manager of the Bank for International Settlements (BIS), Mr Agustín Carsten, held a presentation on the subject: Money in the digital age and the role for central banks. In his presentation Mr Carsten pointed out that central banks needs to work with legislators and commercial banks in order to policy the digital economy. In relation to cryptocurrencies BIS General Manager added that central banks should particularly look at the ties linking cryptocurrencies to fiat currency, making sure that is not parasitic. ‘If authorities do not act pre-emptively, cryptocurrencies could become more interconnected with the main financial system and become a threat to financial stability’ he added. Referring to bitcoin, Carsten added that even envisaged as an alternative payment system it now represent the ‘combination of a bubble, Ponzi scheme and environmental disaster’. Presentation was held in House of Finance, Goethe University in Frankfurt.