The Bank for International Settlements, which is also known as the central bank of central banks, said bitcoin is “a poor substitute for the solid institutional backing of money” in a part of the annual report released on Sunday.
The BIS counted multiple “shortcomings” behind its opinion. It said cryptocurrencies are too unstable, consume too much electricity, and are subject to too much manipulation and fraud to ever serve as bona fide mediums of exchange in the global economy.
The most striking finding of the 24-page-document was about blockchain, the underlying technology behind bitcoin. The 88-year-old institution also said the blockchain could not be used for the retail transaction as the size of ledgers would swell eventually leading to the collapse of the internet.
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