Central Bank launches against criptomoedas amid its "devaluation" and ensures that they represent a number of risks



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The pressure increases in the battle between platforms of criptomoedas and banks, and this time it was the president of the entity, Mario Marcel, who took the floor. Virtual currencies "are not a good means of payment, because their acceptance is very limited and are not recognized as legal tender," he said, along with some accounts, warning people and the financial system.

How things change in a year! By the end of 2017, investors were willing to pay almost double the underlying value to buy a stake in the only US investment fund in bitcoins. Now the prize is almost non-existent as a result of the fall near 70% of the largest cryptoman.

And is that the funding obtained from the so-called initial offers of coins has been reduced considerably since mid-year. Many of the startups that managed to raise money in this way felt the impact of the collapse of the digital asset market and, as a result, reduced staffing and closed operations.

In addition, the profitability of the mining calls, whose servers are compatible with the operations of the bitcoin network, also plummeted. Many have completely abandoned the business or disconnected some of their servers. The amount of computing power that the bitcoin network supports has been reduced as a result, affecting its security and capacity.

The Central Bank assumes a

Faced with this global panorama, the Central Bank took part in the dispute that the crypto-currency operators against the bank in Chile face before the Free Competition Court (Tdlc).

"There is no doubt that crypto-assets are not currently a good substitute for money and represent a number of risks to people and the financial system"said Mario Marcel, president of the organization through a letter sent to the court.

According to La Tercera's slogan, the head of the Central Bank, while pointing out that this position would change if the crypto-crashes made improvements and adapted to a regulatory framework, said that banks have the power to set the conditions to grant their services .

"Just as it would not be appropriate for a bank to grant credit to any person to a specific person without first establishing its ability and solvency, nor would it be appropriate for them to open current accounts for anyone who requested it, without weighing the various risks that it may involve, considering the special legislation applicable to the contract of a bank checking account, "says Marcel.

Statements from the entity's chairman are in the midst of crypto operators or exchanges before the TDLC after some banks decided to close their checking accounts. They won a first battle because the court forced financial institutions to reopen these accounts while the lawsuit is being conducted.

High volatility

Mario Marcel also focused on the coaster behavior of coins worth as bitcoin.

"The high volatility that the value of cryptoactives has shown over time conspires that they can be used as a unit of account and deposit of value," he said, adding that virtual currencies "They are not a good means of payment because their acceptance is very limited and are not recognized as legal tender."

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