Bank for International Settlements called CBDCs the backbone of future monetary systems
Analysts consider cryptocurrencies to be less efficient and secure than central bank digital currencies
28.06.2022 - 07:25
96
2 min
0
What’s new? Experts at the Bank for International Settlements (BIS) have published an “Annual Economic Report” stating that cryptocurrencies and decentralized finance (DeFi) have deep structural limitations that prevent them from becoming the backbone of monetary systems, unlike central bank digital currencies (CBDCs).
Retail #CBDCs can be designed with inclusive features to serve users that currently do not have access to digital payments #BISAnnualEconReport https://t.co/Qvmq4W2N9h pic.twitter.com/TbrozsIFP4— Bank for International Settlements (@BIS_org) June 26, 2022
What other data is contained in the report? According to BIS analysts, the recent collapse of the TerraUSD (UST) stablecoin and its backing token LUNA highlighted the weakness of the system, which is maintained by selling assets for speculation. In addition, blockchain projects are unable to scale without expanding security threats, experts believe.
As a counterbalance to cryptocurrencies, the BIS cites CBDCs as the backbone of future monetary systems. Such systems must combine new technological capabilities with central bank money at their core, analysts said. Among the main benefits of CDBCs are reduced transaction costs and greater access to financial services.
In May, the BIS, in cooperation with the central banks of Malaysia, Singapore, Australia, and South Africa, finalized two prototypes of central bank digital currency platforms. With CBDC, the financial institutions will be able to use issued cryptocurrencies for direct operations with each other. This solution will improve the efficiency of transactions and reduce the economic costs of international payments.
Useful material?
Telegram 
Twitter Trends
Earlier, the French division of the network began accepting payments in bitcoins
Mar 29, 2023
Crypto regulations
The presidential decree obliges the leadership of the High-Tech Park to develop a concept for the development of the token sphere by July of next year
Mar 29, 2023
Incidents
The service team urged users to be more careful in the coming days in connection with the possible activation of scammers
Mar 29, 2023
Market
The law firm’s experts have called on Congress to end illegal pressure on the digital asset industry
Mar 29, 2023
Incidents
The attack affected the asset’s liquidity pool paired with BNB
Mar 29, 2023
Incidents
The phishing site offers potential victims to link a wallet to check the possibility of receiving the asset
Mar 29, 2023
Cryptocurrency rates
-
Bitcoin
$28 417
BTC
+6.03%
-
Ethereum
$1 813.91
ETH
+5.48%
-
Ripple
$0.57
XRP
+17.32%
-
Cardano
$0.39
ADA
+11.27%
-
Dogecoin
$0.08
DOGE
+5.34%
-
Polkadot
$6.26
DOT
+6.88%
-
Litecoin
$92.04
LTC
+6.66%
-
Solana
$10.15
SOL
-9.47%
-
Monero
$158.27
XMR
+2.77%
-
Stellar
$0.11
XLM
+13.56%