Central banks are stepping up their fight against cryptocurrencies

Central banks launch crypto-conference fight just weeks after the start of global regulatory banking he demanded tougher rules having digital assets is a sign that the struggle for control of the monetary system is intensifying.

In a report released on Wednesday, the International Bank Settlements, the central bank’s general body, argued that bitcoin had few features to recover, dismissing stablecoins as an “attachment” to the current monetary system and warning that it is a private innovation in the payments sector. against public property.

The verbal report has yet to be the clearest sign that central banks are unwilling to relinquish their key role in the global financial system.

Fabio Panetta, head of the European Central Bank in charge of developing his digital euro, told the Financial Times the day after that one of the key objectives of the project deal with the spread of digital coins created by other nations and companies.

The BIS said in its report: “Central banks are at the heart of the rapid transformation of the financial sector and the payment system. Innovations such as cryptocurrencies, stablecoins and high-tech garden wall ecosystems tend to work against the public good at the core of the payment system.”

In contrast, the BIS supported the development of digital currencies backed by central banks, saying they could be a tool to achieve greater financial inclusion and reduce high payment costs.

“Digital currencies of central banks. . . offer digitally the only advantages of central bank money: liquidity completion, liquidity and integrity. They are an advanced representation of money for the digital economy [and should be] designed with the public interest in mind, ”he said.

Cryptocurrency prices are under pressure as investors increasingly fear that they may have higher regulations in China and other countries. Authorities in several major economies have recently stepped up their efforts to increase the popularity of bitcoin and its members as politicians lose control of an increasingly large part of the financial system.

The bitcoin price It fell below $ 30,000 on Tuesday for the first time since January, when it hit $ 63,573 after peaking in April.

“It is clear that cryptocurrencies are more speculative assets than money and in many cases are used to facilitate money laundering, ransomware attacks and other financial crimes,” the BIS said. “Above all, Bitcoin has recoverable attributes of public interest even considering its wasteful energy footprint.”

The global financial authority also had a goal stablecoins, which linked cryptocurrencies to other assets. The BIS said they are “trying to import credibility with the protection of real currencies,” but in addition to splitting financial systems and introducing new difficulties, “ultimately they are just an annexation of the traditional monetary system and do not change.”

The BIS also criticized technology companies that choose to participate in the payments sector, and warned that some may be dominant due to the large amount of data they have. He warned that this could lead to excessive costs for transferring money.

Expensive payments are “one of the hardest shortcomings” of the current system, the report added.

“The concern is that when large technology companies enter the payments market, accessing user data from related digital business lines will allow them to reach the top position, which could lead to higher rates than what credit and debit card companies currently charge,” the BIS said.