Top global banking official warns of virtual currency risks

Posted: Updated:

BERLIN (AP) - A top international banking official says that central banks should be prepared to intervene to prevent virtual currencies becoming a threat to financial stability.

Agustin Carstens, the general manager of the Bank for International Settlements - an international organization for central banks - said Tuesday that bitcoin "has become a combination of a bubble, a Ponzi scheme and an environmental disaster."

In a speech in Frankfurt, Germany, Carstens said many people believe so far that, given the limited size of virtual currencies, "concerns about them do not rise to a systemic level."

But he added that "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 said central banks must be prepared to intervene if necessary.

Copyright 2018 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

sorry to interrupt
your first 20 are free
Access to News 12 is free for Optimum, Comcast®, Time Warner® and Service ElectricSM customers.
Please enjoy 20 complimentary views of articles, photos, and videos during the next 30 days.
you have reached your 20 view limit
Access to News 12 is free for Optimum, Comcast®, Time Warner® and Service ElectricSM customers.
Please login or create an account to continue enjoying News12.
Our sign-up page is undergoing maintenance and is not currently available. However, you will be given direct access to news12.com while we complete our upgrade.
When we are back up and running you will be prompted at that time to complete your sign in. Until then, enjoy the local news, weather, traffic and more that's "as local as local news gets."