Crypto Falls Short as a Viable Currency, BIS Tells G20

The post Crypto Falls Short as a Viable Currency, BIS Tells G20 appeared first on Coinpedia Fintech News

The Bank for International Settlements (BIS) has published a report on the future of cryptocurrencies. The report, which was sent to the finance ministers of the world’s twenty largest economies, raises concerns about the “inherent structural flaws” of cryptocurrencies.

The BIS argues that cryptocurrencies are unstable, inefficient, and lack accountability. The report also cites the recent collapses of FTX and Terra as evidence of the risks associated with cryptocurrencies.

“The Innovation Hub has conducted 12 CBDC projects that cover retail and wholesale, both in a domestic and cross-border context. For domestic use cases, two projects investigate wholesale CBDC (wCBDC) and five look at retail CBDC (rCBDC).”

BIS also acknowledges crypto’s potential 

Despite these concerns, the BIS acknowledges that cryptocurrencies have the potential to offer innovative benefits, such as automated payments. However, the report concludes that these benefits are outweighed by the risks.

The BIS’s report is likely to fuel the debate about the future of cryptocurrencies. Some people believe that cryptocurrencies are a threat to traditional financial systems, while others believe that they have the potential to revolutionize the way we pay for goods and services.

The G20, a group of the world’s leading economies, is also considering the issue of cryptocurrencies. The group is expected to discuss the matter at a meeting in India this weekend.

The BIS’s report is a timely reminder of the risks associated with cryptocurrencies. However, it is important to note that the report does not dismiss the potential benefits of cryptocurrencies. The debate about the future of cryptocurrencies is likely to continue for some time.