According to the Bank of International Settlements (BIS), cryptocurrencies such as Bitcoin (BTC), can’t be used as money as they are “flawed.” In a recent report titled “Lessons Learnt on CBDCs” the BIS shared information with the G20 on how they are preparing the ground for central bank digital currencies.
BIS Warns: Crypto Can’t Be Used as Money
Central Bank Digital Currencies (CBDCs) seem to be closer every single month. The BIS has released a report in which they share with G20 countries the lessons learnt on central bank digital currencies.
As per the report, there have been 12 CBDC projects involving retail and wholesale in domestic and cross-border contexts. Additionally, they discuss virtual currencies and their impact as well. They explain that there is an “urgent” need to start research efforts on CBDCs as cryptocurrencies and stablecoins “are already here.”
At the same time, the report outlines that cryptocurrencies have an inherent structural flaw that would not make them suitable to play a significant role in the economy. Therefore, they can’t be used as money.
Over the last few years, we have seen multiple cryptocurrencies expand all over the world. Bitcoin (BTC), the largest one, was able to reach a price per coin of $69,000 in November 2021. This shows that there has been a clear interest for virtual currencies that pushed the price of BTC higher.
Central banks and governments in different regions are already working in order to release central bank digital currencies. This is one of the ways in which they would be able to fight against virtual currencies and their expansion in the last years.
The main question is whether the population will be forced to use them or if it will be a voluntary decision taken by individuals around the world as it already happened with Bitcoin.