BIS: Conventional Money Safe from Cryptocurrency Rule


Cryptocurrencies' model of generating trust limits its potential to replace conventional money, the Bank for International Settlements (BIS) writes in its Annual Economic Report.

In a special chapter on cryptocurrencies, the BIS — an international financial institution owned by central banks — has argued that the decentralized technology underpinning private digital tokens is no substitute for tried and trusted central banks.

A BIS announcement stated that, in contrast to conventional money, today's cryptocurrencies become “more cumbersome” to use as the number of users increases.


BIS on cryptocurrencies: 


Read part two of a Port Technology blockchain technical paper by Wolfgang Lehmacher from the World Economic Forum

In a video (above), Hyun Song Shin, Economic Adviser and Head of Research, said: “Money has value because it has users.

“Without users, it would simply be a useless token.

“That's true whether it's a piece of paper with a face on it or a digital token.”

Read more: 

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