BIS: BTC is “Bubble, Ponzi, An Environmental Disaster”

The general manager of the Bank for International Settlements Agustin Carstens сriticizes about cryptocurrencies and "novel technology"
07 February 2018   102

The general manager of the Bank for International Settlements (BIS), the "central bank of all central banks," Agustin Carstens, severely criticized bitcoin and other crypto-currencies as unattractive technology and an inconsistent payment system. This is reported by CCN.

Novel technology is not the same as better technology or better economics. That is clearly the case with Bitcoin: while perhaps intended as an alternative payment system with no government involvement, it has become a combination of a bubble, a Ponzi scheme and an environmental disaster.

Agustin Carstens

The general manager, Bank for International Settlements

He urged regulators around the world to put pressure on the cryptocurrency industry, so it did not undermine people's confidence in central banks. 

Authorities are edging closer and closer to clamping down to contain the risks related to cryptocurrencies. There is a strong case for policy intervention [intended to] safeguard payment systems.

Agustin Carstens

The general manager, Bank for International Settlements

In his opinion, if it does not deprive the industry of "oxygen", regulators will always be able to tip the scales in their favor. At the same time, Carstens said that digital currencies are actively used for illegal activities. 

First real-life cryptocurrency robbery reported in Taiwan

Four men stole 5 million Taiwanese dollar worth of Bitcoin, the police has already arrested the suspects
22 February 2018   52

Bitcoin has attracted lots of unwanted attention from hackers and scammers alike. Recently not a week passes without news of an exchange or user being hacked or some company's computers being hijacked to mine cryptocurrency. And now Taiwanese news outlets report first real-life robbery of Bitcoin in their country.

The robbery took place in Taichung, Taiwan's central city. The police reports three men being involved in the robbery itself and one as a planner. Criminals persuaded the victim to meet with them face-to-face under the guise of being interested in buying Bitcoin from him. After the victim showed the robbers the proof of his bitcoins on his phone, the men attacked him and his friend and transferred 18 bitcoins worth 5 million Taiwanese dollar via the phone wallet.

The suspects then forced the unfortunate seller to drink strong local liquor to make everything look like a drunken fight had taken place. The police arrived at the scene after receiving the reports of a fight and found two victims. Two of the offenders had fled, but the third has been arrested at the scene of the crime. He later provided investigation with information about his accomplices. They were arrested soon after.

The police later apprehended the man believed to be the mastermind behind the plan. All this was released in the yesterday's report by the Taiwanese law enforcement and the case is already viewed as “the first domestic case of bitcoin robbery”. The report doesn't mention if the crypto was returned to the rightful owner.

Similar cases has been rumored to happen in the US, but no records are released as of yet. So the unofficial governmental advice is to be more cautious of the buyers requesting face to face meetings in the light of this event.