Crypto's hacks, instability and congestion mean it can't be used as an alternative monetary system, central bank organization BIS_org told finance ministers from the world's largest economies. jackschickler reports.
The report from BIS, a grouping of the world’s major central banks, cited issues of instability, inefficiency and accountability that outweigh potential innovative benefits such as automated payments.
Despite the millions of retail and institutional investors getting involved in the growing sector, “crypto has so far failed to harness innovation to the benefit of society,” said the report, prepared for a meeting of G20 finance ministers and central bank governors due to take place in Gandhinagar, India this weekend.
“Crypto remains largely self-referential and does not finance real economic activity,” it added. “Inherent structural flaws make it unsuitable to play a significant role in the monetary system.” The report comes after a turbulent year for crypto. The report cites the losses from the collapses of FTX and of the Terra ecosystem, the risk of hacks and rug pulls and the problems of scaling to become the size a full-on payment system will need – since, it said, permissionless blockchains that grow too large get congested.
Central bankers’ skepticism about crypto is nothing new, given fears that new payment systems could disrupt or displace the traditional fiat currencies they issue., cryptocurrencies tied to the value of fiat currencies, since the effect on centralized monetary policy can be even more pronounced in emerging markets.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Dubai crypto regulator suspends BitOasis crypto exchange licenseDubai’s crypto regulator VARA said BitOasis hasn’t met “key conditions” within a certain timeframe for its operational license and subsequently suspended the firm's license until it can meet the conditions.
Read more »
BOE governor trashes crypto, stablecoins in favor of ‘enhanced digital money’In a speech on July 10, Bank of England Governor Andrew Bailey explained the failings he sees in cryptocurrency and how digital money can be enhanced.
Read more »
Rand Paul condemns taxpayer money used on experimental gender transition proceduresThe federal government is spending over $3 million in taxpayers’ money to fund research on expanding access to gender transition operations for minors, according to a report from the Daily Wire. It’s a gross mismanagement of funds, an example of government overreach, and was rightfully condemned by…
Read more »
Spot crypto exchange volumes trending lowerSpot crypto exchange volumes lag broader market activity, according to data from The Block.
Read more »
Legendary Trader Peter Brandt Says 'Bubble Is Popping'.PeterLBrandt Brandt has shared an unenthusiastic view of the crypto market
Read more »
Trillions of Shiba Inu (SHIB) Might Be at Sell-off Risk, Here's ReasonShiba Inu: Trillions of SHIB held by bankrupt crypto lender, here's how much $SHIB ShibArmy SHIBCommunity
Read more »