Bitcoin “Has Few Redeeming Public Interest Attributes” says BIS

Key Takeaways

The Bank for International Settlements has blasted Bitcoin ( $58,855.00 ) in a new economic report.
The report states that Bitcoin ( $58,855.00 ) “has few redeeming public interest attributes.”
Stablecoins also came under fire with questions surrounding their credibility.

Share this article

A scathing report from the Bank for International Settlements (BIS) claims Bitcoin ( $58,855.00 ) “has few redeeming Public Interest Attributes.”

The BIS as the Banks’ Bank

The Bank for International Settlements serves 60 central banks worldwide, dictating monetary policy and fostering cooperation. 

The recent announcement follows a previous consultation paper released Jun. 10, where the BIS argued the growth of cryptocurrencies could increase the risk of financial instability, stating,

“While banks’ exposures to cryptoassets are currently limited, the continued growth and innovation in cryptoassets and related services, coupled with the heightened interest of some banks, could increase global financial stability concerns.”

Due to be published on Jun. 29, the BIS report cites Bitcoin ( $58,855.00 ) ’s use in “money laundering, ransomware attacks, and other financial crimes.” Additionally, the report criticized Bitcoin ( $58,855.00 ) ’s “wasteful energy consumption” and affirmed the bank’s view that cryptocurrencies were speculative assets.

Stablecoins Under Attack

The latest report also warns of cryptocurrencies’ threat to financial stability, this time targeting stablecoins. 

“Stablecoins attempt to import credibility by being backed by real currencies. As such, these are only as good as the governance behind the promise of the backing.”

The report is just the latest in a series of criticisms levelled against stablecoins. Tether faced scrutiny in the past over the proportion of circulating coins that were backed by cash. A report published by Tether in May revealed that 75.85% of its reserves were backed by cash or cash equivalents. 

It remains to be seen what long-term effects the BIS’s stance will have. However, as the BIS holds significant influence over central banks across the globe, its conservative stance could threaten hopes for widespread adoption of Bitcoin ( $58,855.00 ) .

Disclosure: The author held BTC and ETH at the time of writing

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

BIS Crypto Report Undermines Itself. Not Cryptocurrency.

Over the past few days, media outlets have taken it in turns to report on a recent assessment published by the Bank of International Settlements (BIS) on Sunday. Titled as “Cryptocurrencies: looking…

What is Polygon (MATIC): Ethereum ( $3,158.06 ) ’s Internet of Blockchains

In terms of both decentralized app (DApp) development and adoption, no blockchain has been more successful than Ethereum ( $3,158.06 ) (ETH). But despite its relative success, the Ethereum ( $3,158.06 ) network still contains several…

BIS Notes Cross-Border Banking Decline Since Bitcoin ( $58,855.00 ) ’s Creation

The Bank for International Settlements (BIS) has just released its quarterly report, describing dwindling cross-border banking relationships over the past decade. Correspondent Banking Relationships Falling Between 2011 and 2018, correspondent…

Bank of International Settlements Requesting Feedback for Crypto Regul…

The Bank of International Settlements, an international body owned by 60 worldwide central banks, published a discussion paper on treatment of crypto assets. The committee is requesting the opinion of…


Recommended For You

About the Author: wp4crypto