Bank of International Settlements (BIS) is made up of 60 central banks and in a 24 page document published on it's website as part of its annual economic reports it has now stated that cryptocurrencies cannot scale.
Established in 1930, the BIS is owned by 60 central banks, representing countries from around the world that together account for about 95% of world GDP. Its head office is in Basel, Switzerland and it has two representative offices: in Hong Kong SAR and in Mexico City.
- Fostering discussion and facilitating collaboration among central banks
- Supporting dialogue with other authorities that are responsible for promoting financial stability
- Carrying out research and policy analysis on issues of relevance for monetary and financial stability
- Acting as a prime counterparty for central banks in their financial transactions
- Serving as an agent or trustee in connection with international financial operations
According to BIS report, the major downside to crypto preventing it from replacing cash-money are basically: scalability, stable value of token and trust in the finality of payments. The published document criticises cryptocurrencies' decentralized nature as a flaw to it's existence rather than its strength.
You can read the whole report here but the fact is that cryptocurrencies are a threat to central banking. But they also present central bankers with an opportunity to adapt while they still can.
Honestly speaking if you leave it to the banksters they will sell every bit of this earth and everything on it to the highest bidder for all it's worth and then some. Time and again they have demonstrated the corruption in their system through various setbacks and global financial crisis.
I'm not suggesting that cryptocurrencies will overtake cash soon. It would be simply naive to believe that but they will continue growing and gaining traction towards becoming more mainstream than they are today.
Wonder why they'd expect anyone to believe their bullshit that traditional central banking is superior to decentralized payment and monetary systems such as cryptocurrencies.
IMF has recently stated that cryptos are the evolution to the current systems in place in their recently published report.
Luckily for us all, they are not the ones controlling the top blockchains in existence today.
If you were wondering, Steem is still processing the largest number of transactions per day amongst all blockchains in existence.
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@firepower thanks for this digestible info, I ve gone through the link and I think that the problem of the Central Bank is their inability or unwillingness to change or adopt to the new trend
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They will always talk negatively and misuse their power to influence the market so they can buy low and sell high and get money from cryptos themselves, its hypocritically funny and annoying at the same time.
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The banking system is so worried about Bitcoin. With second layer solutions, like Lightning Network, getting better and better every day it's only a matter of time before traditional banks become extinct.
The smart people in banking know this and are probably buying Bitcoin. Announcements like this are most likely a play for time.
Exciting times ahead bro. 👍
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Enjoyed
Thanks for the update.
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Yeah preservation is not in the vocabulary of some humans. To bad we elected the promotors of this system, we wrote the laws, and enforced them with military & police.
We the taxing citizens did it all, we could take power back in a second, just ignore cash and move on :)
Weak analyzes by BIS they sure would have said that the 56k modem was the peak of tech and would not scale either, or perhaps the CD for storage :)
Cryptos will scale just fine with bandwith and memory scaling..
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Cryptocurrency is Dangerous for bank. If everyone start using Cryptocurrency to transfer money then no one will visit to banks. So their report is in their favour. They are looting people by putting high charges on transfer money and other things. Their legs started shaking.
But it's good for them to adapt Cryptocurrency otherwise they will surly fall in huge loss. They are standing because of government pressure to people.
But if Cryptocurrency like Tether adapted by banks then they can survive. Few things are unable to control And one of them is Cryptocurrency.
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good information, it's the expected difference from both
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I believe that being the bank the first to be affected, with the subject of the cryptomoneda boom, they will always look for some kind of advertising plot to undermine the success of crypto today, perhaps in less time than we imagine, we are free.
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Good overview
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It's indeed a great move towards our Economic growth
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"scalability, stable value of token and trust in the finality of payments"
My opinion is that this 3 points are definitely a weakness, but I don't know any starting project/company who does not face this type of problems.
All of those problems exist now because crypto is too small, and size actually matters... I don´t need to think much for solutions because as soon as the masses hit crypto, all those 3 problems start getting solved, it´s a part of the process, but who am I to say anything different than 60 Central Banks.
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I think these issues of today will be no more in a few years. By the time we see mainstream adoption these may be resolved.
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Exactly, definitely agree with that!
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