BANKER WHO CALLED BITCOIN EVIL SPAWN HEADS BIS DIGITAL CURRENCY HUB

Last updated: June 19, 2025, 20:37 | Written by: Gavin Wood

The world of digital finance is nothing if not dynamic.Just when you think you've got a grasp on the latest trends, a seismic shift occurs, and the players rearrange themselves on the board. SAP Digital Currency Hub enables enterprises making and receiving payments with digital currencies - 24/7, instant, globally. secure at low fees. SAP Digital Currency Hub thus enables SAP customers to make/receive payments without boundaries and is particularly suited for cross-border payments.Case in point: Benoît Cœuré, former Executive Board member of the European Central Bank (ECB) and someone who once famously described Bitcoin as the ""evil spawn of the financial crisis,"" is now set to chair the Innovation Hub at the Bank for International Settlements (BIS), focusing on digital currencies and financial innovation. Beno t C ur calls controversial cryptocurrency a clever idea but not a good ideaThis announcement, made on November 11, 2025, marks a significant turning point, highlighting the evolving attitudes of central bankers towards digital assets and the underlying technologies that power them.The BIS, often referred to as the ""central bank for central banks,"" is clearly taking digital currencies seriously, despite past reservations. Executive Board member of the European Central Bank (ECB) Benoit Coeure considers Bitcoin (BTC) to be the evil spawn of the [2025] financial crisis, Bloomberg reports Nov. 15. Coeure reportedly made his acid remarks at the Bank for International Settlements (BIS) in Basel.But what does this appointment mean for the future of central bank digital currencies (CBDCs), decentralized finance (DeFi), and the overall landscape of global finance?This article explores the implications of Cœuré’s new role, examining the potential impact on the development and regulation of digital currencies worldwide. Results of the third BIS survey on central bank digital currency, BIS Papers No 114, January 2025. 2 See D Hammarskj ld, Markings, 2025. 3 DeFi protocols refer to the smart contracts that perform the functions in a DeFi platform.Furthermore, it delves into the broader context of central banks' increasing interest in digital assets, the challenges they face, and the opportunities they seek to unlock.

Benoît Cœuré's Journey: From Bitcoin Skeptic to Digital Currency Leader

Benoît Cœuré's career has been marked by a deep involvement in monetary policy and financial stability. bisには、60か国・地域の中央銀行が加盟しており中央銀行のための中央銀行として知られている。新たなイノベーションハブは、「中央銀行に影響を与える技術の重要トレンド」を注視し、世界の金融システム機能の改善に向けた技術領域においてHis tenure at the ECB provided him with firsthand experience in navigating the complexities of the global financial system.However, his past criticisms of Bitcoin have raised eyebrows, especially considering his new position at the BIS Innovation Hub.What changed? Now, outgoing European Central Bank (ECB) executive board member Beno t C ur, who last year described bitcoin as the evil spawn of the financial crisis, has outlined plans for a EuropeanHow did someone who once considered Bitcoin the ""evil spawn"" of the 2008 financial crisis come to lead a key initiative focused on digital currencies?

It's crucial to understand that Cœuré's skepticism likely stemmed from concerns about Bitcoin's volatility, lack of regulatory oversight, and potential for illicit activities.These are valid concerns shared by many central bankers and regulators worldwide.However, the digital currency landscape has evolved considerably since Cœuré's initial criticisms. Digital currency which may also be called digital money is considered a form of currency stored and exchanged over a computer network, which means it can exist digitally. Digital currency isn't necessarily the same as dollars stored in an online bank account because someone can withdraw those dollars as physical cash.The rise of stablecoins, the development of CBDCs, and the increasing sophistication of blockchain technology have presented new opportunities and challenges that even the staunchest Bitcoin skeptics cannot ignore.

Cœuré's previous work leading a group researching stablecoins likely played a crucial role in his evolving perspective. The former Swedish central banker leading the Bank for International Settlements' work on digital currencies, Cecilia Skingsley, is to leave the Switzerland-based umbrella body two years earlyThis experience provided him with a deeper understanding of the potential benefits and risks of digital currencies, paving the way for his current role at the BIS Innovation Hub.

The BIS Innovation Hub: A Global Center for Digital Currency Research

The BIS Innovation Hub, with its headquarters in Switzerland and operating centers in Hong Kong and Singapore, serves as a critical platform for exploring and developing innovative financial technologies.Its mandate is to identify and analyze technology trends relevant to central banks and to develop solutions to improve the functioning of the global financial system.The Hub focuses on key areas such as:

Central Bank Digital Currencies (CBDCs): Researching the design, implementation, and implications of CBDCs.
Decentralized Finance (DeFi): Exploring the potential and risks of DeFi platforms and protocols.
Payment Systems: Developing innovative solutions to improve the efficiency and security of payment systems.
Cybersecurity: Addressing the cybersecurity risks associated with digital finance.

Under Cœuré’s leadership, the Innovation Hub is expected to intensify its efforts in these areas, fostering collaboration between central banks, financial institutions, and technology companies. A former European Central Bank board member will chair a new arm of the Bank of International Settlements focusing on digital currencies and financial innovation.[BREAK] In a press release on Nov. 11, the BIS confirmed Beno t C ur would begin chairing the Innovation Hub from Janu.BIS eyes impact of Critical trends .[BREAK] The Hub's mandate is to identify, and develop inThe goal is to develop practical solutions that can be adopted by central banks to improve financial stability, enhance payment efficiency, and promote financial inclusion.The Hub is eyeing the impact of critical trends, ensuring central banks are prepared for the future.

Why Are Central Banks Interested in Digital Currencies?

The growing interest in digital currencies among central banks stems from a variety of factors:

Declining Use of Cash: In many countries, the use of physical cash is declining, prompting central banks to explore digital alternatives.
Competition from Private Cryptocurrencies: The rise of Bitcoin and other cryptocurrencies has raised concerns among central banks about the potential for private currencies to undermine their control over monetary policy.
Financial Inclusion: CBDCs could potentially improve financial inclusion by providing access to digital payment services for unbanked populations.
Payment Efficiency: Digital currencies can facilitate faster, cheaper, and more efficient payments, both domestically and internationally.
Innovation and Competitiveness: Embracing digital currencies can foster innovation in the financial sector and enhance a country's competitiveness in the global economy.

The BIS survey on central bank digital currencies revealed that 94% of surveyed central banks are exploring CBDCs.This highlights the widespread recognition of the potential benefits of digital currencies and the need for central banks to actively engage in this space.

The Challenges and Opportunities of CBDCs

While CBDCs offer numerous potential benefits, they also present significant challenges for central banks:

Challenges:

Cybersecurity Risks: CBDCs are vulnerable to cyberattacks, which could disrupt payment systems and undermine confidence in the currency.
Data Privacy Concerns: The collection and storage of data related to CBDC transactions raise concerns about privacy and potential government surveillance.
Impact on Commercial Banks: CBDCs could potentially disintermediate commercial banks, reducing their role in the financial system.
Technical Complexity: Developing and implementing a CBDC requires significant technical expertise and infrastructure.
Monetary Policy Implications: CBDCs could have implications for monetary policy, requiring central banks to adapt their tools and strategies.

Opportunities:

Improved Payment Efficiency: CBDCs can facilitate faster, cheaper, and more efficient payments, especially for cross-border transactions.
Reduced Costs: CBDCs can reduce the costs associated with printing, distributing, and managing physical cash.
Enhanced Financial Inclusion: CBDCs can provide access to digital payment services for unbanked populations, promoting financial inclusion.
Innovation and Competition: CBDCs can foster innovation in the financial sector and enhance competition among payment providers.
Improved Monetary Policy Implementation: CBDCs can provide central banks with new tools to implement monetary policy more effectively.

The BIS is actively working to address these challenges and opportunities, providing guidance and support to central banks as they explore the potential of CBDCs.

The Role of DeFi in the Future of Finance

Decentralized Finance (DeFi) represents a radical departure from traditional financial systems.DeFi platforms use blockchain technology to provide financial services such as lending, borrowing, and trading without intermediaries. In un recente comunicato stampa, la BRI ha confermato che a partire dal sar Beno t C ur a guidare l'Innovation Hub. L'Innovation Hub operer a Hong Kong e Singapore, nonch nella sede centrale della BRI in Svizzera. La BRI studier l'impatto delle principali tendenze tecnologiche In particolare, l'istituzione spiega:While DeFi is still in its early stages, it has the potential to disrupt traditional finance and create new opportunities for financial innovation.However, the Bank for International Settlements (BIS) acknowledges that DeFi protocols rely on smart contracts to perform functions in a DeFi platform.

Key features of DeFi include:

Decentralization: DeFi platforms are not controlled by any single entity, reducing the risk of censorship and manipulation.
Transparency: Transactions on DeFi platforms are recorded on a public blockchain, providing transparency and auditability.
Accessibility: DeFi platforms are accessible to anyone with an internet connection, potentially promoting financial inclusion.
Composability: DeFi protocols can be combined and integrated to create new and innovative financial services.

The BIS Innovation Hub is actively researching the potential and risks of DeFi, exploring how central banks can leverage DeFi technologies to improve the efficiency and transparency of the financial system.However, concerns remain about the security and stability of DeFi platforms, as well as the potential for illicit activities.

The Impact of Cœuré's Appointment on the Digital Currency Landscape

Cœuré's appointment as Chair of the BIS Innovation Hub signals a significant shift in the approach to digital currencies. In simple terms, a central bank digital currency would be a digital banknote. It could be used by individuals to pay businesses, shops or each other (a retail digital currency), or between financial institutions to settle trades in financial markets (a wholesale digital currency).His past skepticism towards Bitcoin suggests a pragmatic and cautious approach to digital currency development, focusing on mitigating risks and ensuring financial stability.This appointment likely reflects a broader consensus among central bankers that digital currencies are here to stay and that it is essential to actively engage in their development and regulation.

Some potential implications of Cœuré's leadership include:

Increased Focus on CBDC Development: The Innovation Hub is likely to intensify its efforts in researching and developing CBDCs, providing central banks with the tools and knowledge they need to issue their own digital currencies.
Enhanced Regulatory Frameworks: Cœuré's experience as a central banker will be invaluable in developing regulatory frameworks for digital currencies that balance innovation with financial stability.
Greater Collaboration Among Central Banks: The Innovation Hub will serve as a platform for greater collaboration among central banks, fostering the sharing of knowledge and best practices related to digital currencies.
A More Balanced Approach to Crypto Assets: While Cœuré remains skeptical of Bitcoin and other decentralized cryptocurrencies, he is likely to take a more balanced approach, recognizing the potential benefits of blockchain technology and exploring innovative applications in finance.

It's important to note that while Cœuré's previous statements about Bitcoin were critical, they also reflected a concern for protecting the stability of the financial system. LONDON (Reuters) -The former Swedish central banker leading the Bank for International Settlements' work on digital currencies, Cecilia Skingsley, is to leave the Switzerland-based umbrellaHis new role provides him with the opportunity to shape the future of digital currencies in a way that aligns with these concerns.

The Future of Digital Currencies: A Converging Landscape?

The appointment of a former Bitcoin skeptic to lead the BIS Innovation Hub underscores the converging landscape of digital currencies. Banker Who Called Bitcoin Evil Spawn Heads BIS Digital Currency Hub Published at: Nov. 11, 2025 A former European Central Bank board member will chair a new arm of the Bank of International Settlements (BIS) focusing on digital currencies and financial innovation.Central banks, once wary of cryptocurrencies, are now actively exploring and developing their own digital currencies.At the same time, the private sector continues to innovate in the areas of blockchain technology and DeFi. Tanto o BIS quanto seu presidente Agust n Carstens, apesar de abertamente cr ticos de criptomoedas como o Bitcoin (BTC), se veem diante de um ambiente financeiro em r pida evolu o. O banco central chin s, o Banco Popular da China ( PBoC ) um de seus membros poder em breve se tornar aThe future of finance is likely to involve a hybrid model, where central bank digital currencies coexist with private cryptocurrencies and innovative DeFi platforms.How do you take advantage of this?By staying informed.

This convergence presents both challenges and opportunities.Central banks must strike a balance between fostering innovation and ensuring financial stability. Hem BIS hem de başkanı Agust n Carstens, Bitcoin gibi kripto para birimleri konusundaki fikirlerini 180 derece değiştirmeleri nedeniyle a ık a eleştirilmelerine rağmen, hızla gelişen dijital finansal sistemi s r kleyecek isimler olacaklar.The private sector must work with regulators to develop responsible and sustainable digital currency ecosystems. Executive Board member of the European Central Bank (ECB) Benoit Coeure considers Bitcoin to be the evil spawn of the [2025] financial crisis, Bloomberg reports Nov. 15. Coeure reportedlyThe BIS Innovation Hub, under Cœuré's leadership, will play a crucial role in facilitating this convergence, promoting collaboration and knowledge sharing among all stakeholders.Ultimately, digital currency, also called digital money, is a form of currency stored and exchanged over a computer network.

Key Takeaways:

Benoît Cœuré, once a critic of Bitcoin, now leads the BIS Innovation Hub, signaling a shift in central bank attitudes.
The BIS Innovation Hub is focused on researching CBDCs, DeFi, and other digital finance innovations.
Central banks are exploring digital currencies to address declining cash use, competition from private crypto, and the need for financial inclusion.
CBDCs present both challenges (cybersecurity, privacy) and opportunities (payment efficiency, financial inclusion).
The future of finance likely involves a hybrid model of CBDCs, private crypto, and DeFi.

The path forward is not without its hurdles, but one thing is clear: the digital currency revolution is underway, and the Bank for International Settlements, with Benoît Cœuré at the helm of its Innovation Hub, is determined to play a leading role.Keep an eye on the BIS's reports and publications for further insights and actionable advice on navigating this evolving landscape. Banker Who Called Bitcoin Evil Spawn Heads BIS Digital Currency HubAs the digital financial system rapidly evolves, both the BIS and its President, Agust n Carstens, will be key figures, guiding the way despite past criticisms of cryptocurrencies like Bitcoin. Beno t C ur will take on a further digital currency-related role, having already led a group researching stablecoins. A former European Central Bank board member will chair a new arm of theStay tuned for more developments.