CBDCs, not crypto, are the future of money, says Bank of International Settlements

Be the First to Comment Read

CBDCs, not crypto, are the future of money, says Bank of International Settlements

 CBDCs, not crypto, are the future of money, says Bank of International Settlements
Image source: © Cammeraydave | Megapixl.com

Highlights

  • 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.

Also Read: Millions wiped off Trevor Lawrence’s crypto portfolio: What went wrong?

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.

Market News

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.

Watch

Winners and Losers

Crypto gainers and losers

 Image Source @ 2022 Kalkine Media® 

Image Description: winners and losers in cryptocurrency trading 

Data Source: CoinMarketCap.com, based on top 100 cryptos. 

Note: Growth from the 24 hours prior to 12:30pm AEDT 

Risk Disclosure: Trading in cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory, or political events. The laws that apply to crypto products (and how a particular crypto product is regulated) may change. Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading in the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed. Kalkine Media cannot and does not represent or guarantee that any of the information/data available here is accurate, reliable, current, complete or appropriate for your needs. Kalkine Media will not accept liability for any loss or damage as a result of your trading or your reliance on the information shared on this website. 

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK