BIS slams crypto in new report, says reality doesn't live up to decentralized vision
The Bank of International Settlements thinks crypto is flawed, even if the technology works and could be replicated in a “more trusted traditional financial system.”Connect/Create WalletNo wallet? No problem. You can set one up for free. We recommend Torus for first-time users.The Bank of International Settlements thinks crypto is flawed, even if the technology works and could be replicated in a"more trusted traditional financial system.
Specifically, the BIS said there is a divergence between the decentralized vision often promoted by crypto enthusiasts and reality. It used the 2022 implosion of the FTX crypto exchange as an example. It said that innovations the industry has developed such as programmability, composability and the automation of financial transactions can be replicated or embedded in the"safer and more trusted traditional finance system."sector, calling it"self-referential" and claiming it copied services offered by the traditional financial system. It argued that it amplified risks without financing activity in the real economy.
The report said tokenization of claims on real-world assets is one way traditional finance and crypto could work together. It added this could result in the growth of crypto itself"as new money gets channeled into such tokenized assets."
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