Bank of International Settlements shoots a withering look at bitcoin and peers
London — The Bank for International Settlements (BIS) just told the cryptocurrency world it is not ready for prime time — and as far as mainstream financial services go, may never be. In a withering 24-page article released Sunday as part of its annual economic report, the bank said Bitcoin and its ilk suffered from "a range of shortcomings" that would prevent cryptocurrencies from ever fulfilling the lofty expectations that prompted an explosion of interest — and investment — in the would-be asset class. The bank, an 88-year-old institution in Basel, Switzerland, that serves as a central bank for other central banks, said cryptocurrencies were too unstable, consumed too much electricity, and were subject to too much manipulation and fraud to ever serve as bona fide mediums of exchange in the global economy. It cited the decentralised nature of cryptocurrencies — bitcoin and its imitators are created, transacted, and accounted for on a distributed network of computers — as a fundame...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.