The world body of central banks, the Bank for International Settlements (BIS) indicated that it is now clear that cryptocurrencies are not money but speculative assets. And they go against the public good. Also, he talked about the CBDC.
Specifically, in a report published this Wednesday, the Bank for International Settlements (BIS) led by the Mexican Agustín Carstens, indicated that cryptocurrencies are used for money laundering. Likewise, he dismissed the Stablecoins.
“It is clear that cryptocurrencies are speculative assets more than money. And in many cases they are used to facilitate money laundering, ransomware attacks and other financial crimes.
He also noted: “Bitcoin, in particular, has few redeeming attributes of public interest if its excessive energy footprint is also taken into account.”
Regarding Stablecoins, the BIS said that: “They try to import credibility by being backed by real currencies. But, apart from fragmenting financial systems and introducing new difficulties, they are ultimately only an appendage of the conventional monetary system and not a game changer.
The BIS rebukes cryptocurrencies
Indeed, in its report, the BIS states: “Central banks are at the center of a rapid transformation of the financial sector and the payments system. Innovations such as cryptocurrencies and Stablecoins tend to go against the element of public good that sustains the payment system.
However, the BIS supported the development of central bank digital currencies (CBDC). Saying that they could be a tool to achieve greater financial inclusion and reduce the high costs of payments.
“Central bank digital currencies (CBDCs) offer in digital form the unique advantages of central bank money: purpose of settlement, liquidity and integrity.”
Furthermore, he added: “They are an advanced representation of money for the digital economy. And they must be designed with the public interest in mind. ‘
In this regard, Hyun Song Shin, economic adviser and head of research at the BIS, said: “CBDCs are a concept whose time has come. They open a new chapter for the monetary system by providing a technologically advanced representation of central bank money.
For his part, Benoît Cœuré, Director of the BIS Innovation Hub, said: “CBDCs could form the backbone of a new digital payment system, by allowing wide access. And provide strong privacy and data governance standards. ‘
To conclude, what do you think about what the BIS said regarding cryptocurrencies? Let us know in the comment box.
I say goodbye with this phrase from Henry Amiel: “Criticism turned into a system is the denial of knowledge and the true estimation of things.”