Central banks versus cryptocurrencies. The BIS also takes a stand

Central banks have stepped up their criticisms of cryptocurrencies as the battle over the monetary system escalates, arguing that digital tokens like bitcoin have few redemption features and "work against the public good".

In a report released on Wednesday, the Bank for International Settlements (BIS or BIS in Italian), the global body for central banks, also rejected stablecoins – a link between cryptocurrencies and conventional assets – as an "appendage" to the currency. traditional.

The strongly worded report was the clearest signal that central banks are ready to fight at any cost to undermine the threats that cryptocurrencies can bring to their position in the global economic system. Moreover, the prices of cryptocurrencies are under pressure due to the growing fear of investors of having to face greater regulation as well as the known problems in China.

Earlier this month the Basel Committee, the most powerful banking standard in the world, called for stricter capital rules for holding digital assets.

In its report, the BIS said: “Central banks are at the heart of a rapid transformation of the financial sector and the payment system. Innovations such as cryptocurrencies, stablecoins and the walled garden ecosystems of big technologies all tend to work against the element of public good that underlies the payment system ”. A point of view that closely and inextricably links the state and the central bank, and in which the latter becomes the monetary instrument of the former, identified as the only bearer of the public good. A position that freedmen will not appreciate.

The BIS, however, endorsed the development of central bank-backed digital currencies, the popular CBDCs, saying they could be a tool to achieve greater financial inclusion and reduce high payment costs.

“Central bank digital currencies. . . digitally offer the unique advantages of central bank money: settlement, liquidity and integrity purposes. They are an advanced representation of money for the digital economy and should be designed with the public interest in mind, ”the BIS said.

Certainly, however, the central bank of the banks has made a good effort in fighting the usual currencies. isn't it that from a minor phenomenon they are becoming a threat to the monopoly of money?

Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.

⇒ Register now


The article Central banks against cryptocurrencies. Even the BIS takes a stand comes from ScenariEconomici.it .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/le-banche-centrali-contro-le-criptovalute-anche-la-bis-prende-posizione/ on Wed, 23 Jun 2021 19:14:33 +0000.