Crackdown on cryptocurrencies to come

A graphic of Bitcoin, at the 'Bitcoin Change' shop in Tel Aviv. Photo: Jack Guez / AFP / Getty Images

The head of the Bank for International Settlements, a Switzerland-based lender and think tank for central banks, is calling on central banks to intervene to prevent cryptocurrencies like Bitcoin from wreaking havoc on financial institutions globally, the WSJ reports. The official, Agustin Carstens, said Bitcoin is a “combination of a bubble, a Ponzi scheme and an environmental disaster.”

Why it matters: Carstens is not alone — central banks around the world are warning about risks surrounding cryptocurrencies, per the WSJ. This comes as the value of cryptocurrencies diminish worldwide and could indicate a looming crackdown against them.