A new report on cryptocurrencies has come from the Bank for International Settlements (BIS), which is skeptical of Bitcoin (BTC) and cryptocurrencies.
According to the news of Coindesk, BIS, which gathers the central banks of the world under one roof, wrote in the report sent to the finance ministers of the G20 countries that cryptocurrencies cannot be used as a monetary tool due to their nature.
In the BIS report, he wrote that the negative features of cryptocurrencies such as BTC, such as instability and inefficiency, outweigh its innovative benefits such as automatic payments, and that it cannot be an alternative to fiat currencies due to these negative features.
“The cryptocurrency industry continues to grow and millions of individual and institutional investors are involved in it.
Despite this enormous growth, cryptocurrencies have so far failed to use innovation for the benefit of society.
At this point, cryptocurrencies continue to be self-referential and do not finance real economic activity.
The inherent structural flaws of cryptocurrencies make it unsuitable for it to play an important role in the monetary system.”
*Not investment advice.