BIS CHIEF BASHES CRYPTOCURRENCY AGAIN IN SCATHING REVIEW OF ITS FAILURE AS MONEY

The volatile world of cryptocurrency has once again found itself in the crosshairs, this time facing a barrage of criticism from a familiar source: Agust n Carstens, General Manager of the Bank for International Settlements (BIS). Skip to main content Bitcoin Insider. MenuKnown as the central bank for central banks, the BIS has consistently voiced skepticism about the digital asset class, and Carstens' recent remarks have only intensified this stance. BIS Chief Bashes Cryptocurrency Again in Scathing Review of Its Failure as Money The head of the Bank for International Settlements (BIS) continued the institution s critical stance onHis scathing review centers on the assertion that cryptocurrencies, despite their soaring popularity and purported potential, fundamentally fail as a reliable form of money. Gi a giugno di quest'anno la BIS aveva scatenato indignazione tra la comunit, pubblicando un articolo fortemente critico nei confronti delle criptovalute successivamente citato da numerosi organi della stampa generalista. Keep writing FUD like this. In the attempt to discredit crypto-currencies you are only discrediting yourselves.This critique arrives after a period of significant price fluctuations in the crypto market, with some assets experiencing exponential growth followed by equally dramatic corrections.But what exactly are the BIS's concerns, and what impact could this institutional negativity have on the future of digital currencies? Explore top cryptocurrencies with Crypto.com, where you can find real-time price, coins market cap, price charts, historical data and currency converter. Bookmark the Price page to get snapshots of the market and track nearly 3,000 coins. Use the social share button on our pages to engage with other crypto enthusiasts.This article delves into Carstens' arguments, examines the BIS's broader perspective on crypto, and explores the potential implications for investors, regulators, and the crypto industry as a whole.We'll unravel the complexities surrounding the debate, offering insights into the challenges and opportunities that lie ahead in this rapidly evolving landscape.

The BIS's Fundamental Critique of Cryptocurrency as Money

At the heart of the BIS's criticism lies the assertion that cryptocurrencies lack the essential qualities required to function effectively as money. The head of the Bank for International Settlements (BIS), Agust n Carstens, has expressed skepticism about cryptocurrencies, questioning their ability to replace fiat currency.Carstens, in his public statements, has repeatedly questioned their ability to serve as a stable store of value, a reliable unit of account, and a widely accepted medium of exchange.These are the three pillars upon which traditional fiat currencies are built, and according to the BIS, cryptocurrencies fall short in all three areas.

Store of Value: The Volatility Problem

One of the most persistent arguments against cryptocurrencies is their inherent price volatility. Bitcoin und Kryptow hrungen bekommen erneut schlechte Presse durch Banken. Der Leiter der BIZ sagte, dass sie als Geld versagen w rden. Der Leiter der Bank f r Internationalen Zahlungsausgleich (BIZ) bekr ftigte die kritische Haltung der Institution zu Kryptow hrungen erneut und sagte, sieUnlike fiat currencies, which are typically backed by governments and central banks, the value of cryptocurrencies is largely determined by market sentiment and speculative trading.This can lead to dramatic price swings, making it difficult for individuals and businesses to rely on them as a stable store of value.

For example, consider the rollercoaster ride of Bitcoin, the most well-known cryptocurrency.While it has experienced periods of significant growth, it has also suffered severe crashes, wiping out billions of dollars in value. We find that major banks exposures currently remain at very modest levels. Across countries, higher innovation capacity, more advanced economic development, and greater financial inclusion are associated with a higher likelihood of banks taking on cryptocurrency exposures.This unpredictability makes it challenging to use Bitcoin for everyday transactions or long-term savings.

Unit of Account: Lack of Widespread Adoption

A functional unit of account allows for the consistent and comparable pricing of goods and services.Fiat currencies serve this purpose effectively because they are widely accepted and understood. Bitcoin and cryptocurrency have come in for more bad press from banks as the head of the Bank for International Settlements says they fail as moneyHowever, cryptocurrencies face a significant hurdle in achieving this status due to their limited adoption and fluctuating exchange rates.

Imagine a scenario where a coffee shop prices its lattes in Bitcoin. Top cryptocurrency prices and charts, listed by market capitalization. Free access to current and historic data for Bitcoin and thousands of altcoins.The price would need to be constantly adjusted to reflect the changing value of Bitcoin against the local currency. 国際決済銀行（BIS）の アグスティン・カルステンス総支配人は、仮想通貨について「マネーとしての機能を引き受けることができない」と述べ、従来からの仮想通貨に対する批判的な姿勢を改めて示した。This creates confusion and inconvenience for both the merchant and the customer, making it impractical for everyday use.

Medium of Exchange: Scalability and Transaction Costs

A medium of exchange facilitates transactions by providing a commonly accepted means of payment.While cryptocurrencies offer the potential for faster and cheaper transactions compared to traditional banking systems, they often struggle with scalability and high transaction fees during periods of high demand.

For instance, the Bitcoin network has historically faced challenges in processing a large volume of transactions, leading to delays and increased transaction fees. Agust n Carstens, president of the Swiss-based BIS, known as the central bank for central banks, gave a withering assessment of the cryptocurrency whose price jumped fourfold between October and January.This limits its viability as a practical medium of exchange for everyday purchases.

BIS Concerns About Decentralized Finance (DeFi)

The BIS is also deeply concerned about the burgeoning world of Decentralized Finance (DeFi). BIS Chief Bashes Cryptocurrency Again in Scathing Review of Its Failure as Money Copy Link. Cointelegraph Subscribe. Collect. Share.DeFi aims to recreate traditional financial services, such as lending, borrowing, and trading, on a decentralized, blockchain-based infrastructure. 国际清算银行(BIS)行长继续表达了该机构对加密货币的批判态度, 表示其 无法承担货币的功能。 BIS 7月4日报导称。. 上周与瑞士新闻报刊Basler Zeitung对话，并随后由BIS自己发布，总经理Agustin Carstens告诫 年轻人 不要 试图创建货币, 并与比特币挖矿进行比较。While DeFi offers the potential for greater financial inclusion and innovation, the BIS sees significant risks associated with its unregulated and often opaque nature.

• Regulatory Arbitrage: DeFi platforms often operate across jurisdictions, making it difficult for regulators to effectively monitor and control their activities.
• Lack of Consumer Protection: DeFi users are often exposed to high levels of risk due to the lack of consumer protection measures and regulatory oversight.
• Interconnectedness with Traditional Finance: As DeFi becomes more integrated with traditional financial markets, the risks associated with DeFi could potentially spill over into the broader financial system.

The BIS report also highlights the challenges that DeFi creates for enforcing tax compliance, anti-money laundering laws, and preventing financial malfeasance.The permissionless and pseudonymous design of DeFi protocols makes it difficult to identify and prosecute illicit activities.

Banks' Exposure to Cryptocurrency: A Measured Approach?

Despite the BIS's critical stance on cryptocurrency, it acknowledges that major banks' exposures to the asset class remain relatively modest.The report suggests that while some banks are experimenting with cryptocurrency-related services, they are generally taking a cautious approach.

However, the BIS also notes that banks in countries with higher innovation capacity, more advanced economic development, and greater financial inclusion are more likely to take on cryptocurrency exposures.This suggests that as the crypto market matures and becomes more integrated into the mainstream financial system, banks' involvement could increase.

Factors Influencing Bank Involvement

• Innovation Capacity: Countries with a strong focus on technological innovation are more likely to see banks exploring cryptocurrency-related opportunities.
• Economic Development: More developed economies tend to have a more sophisticated financial infrastructure, which can facilitate the integration of cryptocurrencies.
• Financial Inclusion: Countries with high levels of financial inclusion may see banks offering cryptocurrency services as a way to reach underserved populations.

The Future of Cryptocurrency: A Regulatory Tightrope Walk

The BIS's critical assessment of cryptocurrency underscores the need for a comprehensive and coordinated regulatory framework.While the BIS acknowledges the potential benefits of blockchain technology, it believes that a clear separation between digital assets and traditional finance is essential to protect the stability of the financial system.

Key Regulatory Considerations

1. Licensing and Supervision: Cryptocurrency exchanges and other service providers should be subject to licensing and supervision requirements to ensure compliance with anti-money laundering laws and other regulations.
2. Capital Requirements: Banks and other financial institutions that hold or trade cryptocurrencies should be subject to appropriate capital requirements to mitigate the risks associated with these assets.
3. Consumer Protection: Regulators should implement measures to protect consumers from fraud, scams, and other risks associated with cryptocurrency investments.

The BIS also suggests exploring ways to regulate the DeFi system in a manner that preserves a majority of the benefits of the underlying blockchain architecture but supports accountability and prevents illicit activity. We show that the permissionless and pseudonymous design of DeFi generates challenges for enforcing tax compliance, anti-money laundering laws, and preventing financial malfeasance. We highlight ways to regulate the DeFi system which would preserve a majority of benefits of the underlying blockchain architecture but support accountability andThis could involve implementing know-your-customer (KYC) and anti-money laundering (AML) requirements for DeFi platforms.

Addressing Common Questions About Cryptocurrency

The world of cryptocurrency can be confusing, even for seasoned investors.Here are some answers to frequently asked questions about this evolving asset class:

What is Bitcoin?

Bitcoin is a decentralized digital currency, meaning it is not controlled by a single entity like a central bank. The head of the Bank for International Settlements (BIS) continued the institution s critical stance on cryptocurrency, saying it cannot assume Facebook Instagram Mail Pinterest Reddit RSS Telegram Twitter YoutubeIt operates on a blockchain, a public ledger that records all transactions.Bitcoin is created through a process called ""mining,"" which involves solving complex mathematical problems.

What are Altcoins?

Altcoins are alternative cryptocurrencies to Bitcoin. The live Bitcoin price today is $104,364.35 USD with a 24-hour trading volume of $50,255,072,425.45 USD. We update our BTC to USD price in real-time.There are thousands of different altcoins, each with its own unique features and characteristics.Some popular altcoins include Ethereum, Ripple (XRP), and Litecoin.

What is Blockchain Technology?

Blockchain is a distributed ledger technology that allows for secure and transparent record-keeping.It is the underlying technology behind Bitcoin and many other cryptocurrencies. Bitcoin and cryptocurrency have come in for more bad press from banks as the head of the BIS says they fail as money. The head of the Bank for International Settlements (BIS) continued the institution s critical stance on cryptocurrency, saying it cannot assume the functions of money, BIS reports July 4. Speaking to Swiss newspaper MoreBlockchain has a wide range of potential applications beyond cryptocurrency, including supply chain management, healthcare, and voting.

Is Cryptocurrency a Good Investment?

Cryptocurrency investments are highly speculative and carry significant risks.The value of cryptocurrencies can fluctuate dramatically, and investors could lose their entire investment.It is important to do your own research and understand the risks before investing in cryptocurrency. Posted by u/Cointelegraph_news - 1 vote and no commentsConsider consulting with a financial advisor to determine if cryptocurrency is appropriate for your investment portfolio.

What are the Risks of Investing in Cryptocurrency?

• Volatility: Cryptocurrency prices can be highly volatile, leading to significant losses.
• Security Risks: Cryptocurrency exchanges and wallets are vulnerable to hacking and theft.
• Regulatory Uncertainty: The regulatory landscape for cryptocurrency is still evolving, and new regulations could negatively impact the value of cryptocurrencies.
• Fraud and Scams: The cryptocurrency market is rife with fraud and scams, so it is important to be cautious and do your research before investing.

The BIS's Stance and Its Impact on the Crypto Market

The consistent criticism from the BIS, particularly from figures like Agust n Carstens, undoubtedly influences the perception of cryptocurrency within the traditional financial world.This skepticism can impact institutional investment, regulatory decisions, and public sentiment towards digital assets.When a respected institution like the BIS expresses strong reservations, it raises concerns among investors and policymakers alike.

Potential Consequences of BIS Criticism

• Reduced Institutional Investment: Institutional investors may be hesitant to invest in cryptocurrency if they perceive it as risky or unstable, based on warnings from institutions like the BIS.
• Stricter Regulations: Regulators may be more inclined to impose stricter regulations on the cryptocurrency market in response to concerns raised by the BIS.
• Negative Public Sentiment: Negative publicity from the BIS can erode public trust in cryptocurrency and discourage adoption.

However, it's important to note that the crypto community often views the BIS's critiques with skepticism. The Bank for International Settlements (BIS) is facing sharp criticism from the crypto industry following its latest report advocating for stricter separation between digital assets and traditional finance.Many believe that the BIS is simply protecting the interests of traditional financial institutions and resisting the disruptive potential of blockchain technology. เมนู. ข่าวคริปโตเคอเรนซี่. ข่าว Bitcoin; ข่าว Ethereum; ข่าว Binance Coin; ข่าว DogecoinThis clash of perspectives highlights the ongoing tension between the established financial order and the emerging world of digital assets.

Conclusion: Navigating the Complex Cryptocurrency Landscape

The ongoing debate surrounding cryptocurrency, exemplified by the BIS's critical stance, underscores the complexities and challenges facing this rapidly evolving asset class.While the promise of decentralization, innovation, and financial inclusion is enticing, the inherent volatility, regulatory uncertainties, and security risks cannot be ignored. The head of the Bank for International Settlements continued the institution's critical stance on cryptocurrency, saying it Cannot assume the functions of money, BIS reports July 4.[BREAK] Speaking to Swiss newspaper Basler Zeitung last week, subsequently published by BIS itself, general manager Agustin Carstens cautioned Young people against Trying to create money, drawing comparisonsAgust n Carstens' repeated warnings serve as a reminder of the potential pitfalls of cryptocurrency and the need for a cautious and informed approach.

Whether cryptocurrencies will ultimately fulfill their potential to become a viable form of money remains to be seen.However, the discussion ignited by institutions like the BIS is crucial for shaping the future of digital finance.Key takeaways include:

• Volatility is a major concern: The price swings in the crypto market make it difficult to use as a stable store of value.
• Regulatory clarity is needed: Clear and consistent regulations are essential for protecting investors and preventing illicit activities.
• Due diligence is crucial: Investors should do their own research and understand the risks before investing in cryptocurrency.
• The debate is ongoing: The future of cryptocurrency will depend on how these challenges are addressed and whether digital assets can gain wider acceptance and trust.

As the crypto market continues to evolve, it's essential to stay informed, exercise caution, and engage in constructive dialogue to ensure that this transformative technology is developed and utilized responsibly. BIS Chief Bashes Cryptocurrency Again in Scathing Review of Its Failure as MoneyConsider seeking advice from qualified financial professionals to help navigate the complexities of the cryptocurrency market and make informed investment decisions.