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- The Bank of International Settlements (BIS) has said that the future of money is not in cryptocurrencies
- The major problems identified by BIS are security issues, lack of regulation, high fees and scalability issues
The Bank of International Settlements – the BIS – has said that the future of money is not in cryptocurrencies but in central bank digital currencies (CBDC)s.
The BIS says this is due to the flaws that cryptocurrencies pose, particularly those that came to light in the most recent crypto crash.
As part of a BIS report released on Tuesday, BIS’s Economic Adviser and Head of Research Hyun Song Shin said that anything that crypto can do, CBDCs can do better.
The BIS report identified the main issues facing the crypto space, whilst laying out its blueprint for the future global monetary system.
The report said that while cryptocurrency does indeed offer some positive technological possibilities, it ultimately is unable to fulfil the goals of a digital monetary system.
The major problems identified by the report include security issues, lack of regulation, high fees and scalability issues.
Instead, BIS says that CBDCs are the future of finance.
Shin says in the BIS report that they see the future system a “fusion of enhanced technical capabilities around the core of trust provided by central bank money”.
The report added that CBDCs offer the same functionalities of crypto without the current pitfalls.
Bitcoin gained just 1% to stay hovered above the US20K mark and was recently trading at US$20,610.
Meanwhile, Ethereum dropped just slightly overnight and was recently trading at US$1,117.
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Data Source: CoinMarketCap.com, based on top 100 cryptos.
Note: Growth from the 24 hours prior to 12:30pm AEDT
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