Do cryptocurrencies really need to be regulated?

According to Agustín Carstens, head of the Bank for International Settlements, yes. The latter is an international financial organization that encourages international cooperation between the central banks of different countries.

The main reason for his opinion is that he regards digital currency as a “speculative vehicle”. However, it also points out that these are usually "misused" to evade regulations, especially those referring to money laundering and terrorist financing, he told CNBC.

With the pandemic, the economic repercussions have been very serious, it has even come to rethink the way in which people can "secure their money." Indeed, there has been a lot of speculation about the banking environment. In this sense, many new investors considered buying digital currencies by equating them to “digital gold” and considering that they can be a kind of lifeline against inflation events or economic crises.

On the other hand, Cartens highlighted the already known sharp price variation, the anonymity of its participants, as well as their questioned “support” as characteristics that only lead to the need for regulation. Thus, he noted: "I don't see any dominance of cyber currencies (…) cryptocurrencies have not made any progress in terms of working as money".

In the case of stablecoins (stable digital currencies), he stated that their uses are limited and that they should always complement cash, never replace it. This despite the fact that several countries are already preparing the implementation of stablecoins in their economies.

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Marilú Lazo
Lawyer from the Pontificia Universidad Católica del Perú (PUCP). Director of The Crypto Legal Blog, she has experience in corporate advice, consumer protection, as well as in matters of personal data protection and new technologies.

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