The single digital currency? For bankers and major financiers, Bitcoin (BTC) and cryptocurrencies seem to be summed up in one word: “risks”. If they like their futures central bank digital currencies (MNBC) respective, they hate those ugly currencies decentralizedtotally out of their control. The Bank for International Settlements (BIS) proves it once again, by incensing the MNBCs in a report, to better to press in BTC and cryptos in another.
Cryptocurrencies: a “risky risk” to be avoided according to the BIS
There Bank for International Settlements has just returned, this Tuesday, July 11, 2023, two gears for Ministers of Finance and Governors of Central Banks of the countries of the G20. If the former says all the good that the “bank of banks” thinks about MNBCthe second gear – which we will focus on here – go down in flames decentralized cryptocurrencies.
From the title of this twenty-page document, we can see the negative bias of these central bankers: “The crypto ecosystem: key elements and risks”. PAF! Even before the body of the report, right from the title, we are entitled to fetish word bankers to qualify Bitcoin and its ilk. According to a keyword search, “risk(s)” appears 99 times in these few pages. Selected excerpt:
“A great example is stablecoins, which rely on the credibility [des devises fiduciaires] and may present risks for monetary sovereignty. (…) while decentralized finance (DeFi) mainly replicates the services offered by the traditional financial system, it does not finance any activity in the real economy, but amplifies the risks known. (…) Cryptocurrencies and DeFi present risks substantial for investors (especially for individuals). »
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Bankers Declare Bitcoin ‘Unfit’ as Currency
The report will then spend its time taking only the negative aspects allocated to crypto-assets, but most of which also exist in traditional finance (and in far more worrying proportions!).
Thus, for the Bank for International Settlements, the “inherent structural flaws” to cryptocurrencies make them “unfit to play a constructive role in the monetary system”. We also feel, in this conclusion of the report, that it bothers bankers a lot that the innovations brought by the cryptosphere “encroach” on their traditional financial system, with a growing success.
“(…) millions of individual users as well as more and more institutional investors have entered the cryptocurrency ecosystem in recent years. (…) Cryptocurrency has so far failed to harness innovation for the benefit of society. (…) It suffers from inherent shortcomings related to stability and efficiency, as well as accountability and integrity. (…)”
It’s good, don’t throw any more gentlemen bankers. We have understood that you do not like innovations that deprive you of your coinage privilege, if only a little bit. It is indeed for this reason that, in addition to systematically denigrate Bitcoin & Co, these great moneymakers strive to develop as soon as possible their precious central bank digital currency… Before competition crypto from getting too strong, despite their loud cries on this unexpected loss of power over money.
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