Cryptocurrency is a poor substitute for fiat money, claims the Bank of International Settlements in a chapter of its annual report, released on June 17.
The sender is the message Before delving into the substance of the claim, a brief review of where it comes from is instrumental.
The Bank of International Settlements is an institution owned by the world’s 60-largest central banks that together command 95 percent of global GDP.
The Bank’s mission lies in promoting cooperation between central banks, for the sake of global monetary and financial stability.
All in all, the BIS report presents exactly the kind of criticism of crypto that one could expect from a conglomerate of central banks.
Earlier this week, the Bank of International Settlements (BIS) in Switzerland issued a new document as part of its annual economic report that warns citizens of the dangers of digital currencies.
The Bank of International Settlements (BIS), an international financial institution that acts as a bank for central banks of nations, fostering international monetary and economic cooperation, has stated that bitcoin and other digital assets are not perfect examples of money.
CNBC Fast Money’s Brian Kelly, responding to the release of the BIS’ annual report, on Monday said that The Bank for International Settlements [BIS] and other banks are the middlemen that cryptocurrencies like Bitcoin seek to do away with.
The first phase of a transition toward a true “money of the people” will be implemented by central banks themselves, striving and competing to remain relevant in a post-crisis, post-trust, digitally connected global economy.
The Bank of International Settlements says crypto can’t function as money, given it lacks “scalability, stability of value and trust in the finality of payments”
Bitcoin has generated diverse opinions on the ground of its monetary status. Over the years, the cryptocurrency has been used as a medium of exchange on most of the dark web marketplaces, and institutions.