BIS bags crypto-future
While crypto-fans pursue a dream of money free from central control, a major authority says cryptocurrency will never replace traditional forms.
The 90-year-old Swiss Bank for International Settlements (BIS) - the central bank for central banks - has issued a research report that finds cryptocurrencies contain inherent contradictions that make their widespread use as money impossible.
The BIS paper says digital currencies are not stable enough.
“Sustained episodes of stable money are historically much more of an exception than the norm,” the BIS report notes.
“In fact, trust has failed so frequently that history is a graveyard of currencies.”
But the BIS says there is one model that is best for monetary stability.
“The tried, trusted and resilient way to provide confidence in money in modern times is the independent central bank,” it said.
BIS head of research Hyun Song Shin discusses the problems with cryptocurrencies in the video below.