Cryptocurrency: BRI calls for investor protection, bitcoin plunges

Zurich (awp) - The Bank for International Settlements (BIS) on Tuesday issued an unequivocal appeal to the authorities, calling on them to "protect" investors "against the proliferation of cryptocurrencies," said Agustín Carstens, director of the central bank of central banks. Bitcoin recorded a dramatic fall at the same time.

"The meteoric rise of cryptocurrencies should not make us forget the important role of central banks as repositories of public trust," said Carstens at a conference in Frankfurt. According to the latter, "private digital tokens posing as currencies must not undermine that trust".

For the head of the Basel issuing institute, the authorities must ensure that technological progress is not used to legitimize profits from illegal activities and must educate and protect investors.

Bitcoin "today combines the characteristics of a bubble, a Ponzi scheme and a disaster for the environment," said Carstens to the attention of the most widespread cryptocurrency. These virtual currencies should not "interfere with the institutional infrastructure of the financial system".

After climbing to nearly $ 20,000 in December 2017, bitcoin has fallen steadily, falling briefly below $ 6,000 on the Bitstamp trading platform Tuesday morning. At 11:28, the virtual currency traded around 6533 USD.

Faced with the soaring of bitcoin in 2017, "the fear of 'missing an opportunity' has pushed up demand," said Nicolas Roth, head of alternative assets at Bank Reyl. "Despite the risks and volatility, cryptocurrencies are a reflection of the tectonic movements that are changing the way business is conducted, and we expect a few small earthquakes in the future," he added.

Swissquote's Arnaud Masset pointed out that the market capitalization of cryptocurrencies plunged from $ 100 billion to $ 280 billion in less than 24 hours, under the blows of regulators. Since the high of early January, 550 billion have evaporated.

Monetary authorities and financial actors around the world have indeed hardened the tone in recent days. In China, where trading platforms had already had to cease operations in September, the government now wants to stifle the ultimate cryptocurrency transactions, said Monday an official media. In particular, the authorities blocked access to trading platforms.

The president of the European Central Bank (ECB), Mario Draghi, also warned on Monday against cryptocurrencies, assets according to him "very risky" and whose price is "entirely speculative".

The subject will be discussed at the next G20 Finance in March, where the French and German Finance Ministers will present common proposals on the regulation of cryptocurrencies