Central banks have launched a fight against cryptocurrencies a few weeks after the global banking regulator he demanded harsher rules to keep the digital axis, in sign of which the battle for control of the monetary system is growing.
In a report released Wednesday, the Bank for International Settlements, the global body for central banks, argued that bitcoin had few redemption characteristics, dismissed stablecoins as an “appendage” to the current monetary system and warned that private innovation in the payments sector is against the public good.
The firmly formulated report was the clearest signal from central banks that they are not ready to relinquish their key role in the global financial system.
It came just days after Fabio Panetta, the European Central Bank’s policy maker tasked with developing his digital euro, told the Financial Times that one of the main goals of the project was to fights the spread of digital currencies created by other nations and companies.
In its report, the BIS said: “Central banks are at the heart of a rapid transformation of the financial sector and the payment system. Innovations such as cryptocurrencies, stablecoins and high-tech walled ecosystems tend to work against the element of public goods that underpins the payment system. ”
In contrast, the BIS endorsed the development of digital currencies backed by central banks, saying they could be a tool to achieve greater financial inclusion and reduce the high costs of payments.
“Numerical currencies of the central bank.” . . offers in digital form the unique advantages of central bank money: liquidation purpose, liquidity and integrity. They are an advanced representation of money for the digital economy [and should be] conceived with the public interest in mind, ”he said.
Cryptocurrency prices are under pressure due to the growing fear of investors facing increased regulation in China and other countries. The authorities of many large economies have recently intensified efforts to curb the growing popularity of bitcoin and its peers because of concerns that policymakers are losing control of a growing part of the financial system.
U price of bitcoin it fell below $ 30,000 Tuesday for the first time since January, after the April peak when it hit $ 63,573.
“It is clear that cryptocurrencies are speculative assets rather than money, and in many cases are used to facilitate money laundering, ransomware attacks and other financial crimes,” the BIS said. “In particular Bitcoin has few public interest attribute drafters when it comes to its waste energy footprint.”
The global financial authority also has goals stablecoins, that cryptocurrencies are linked to other assets. The BIS said they were “trying to bring credibility to be supported by real currencies”, but other than fragmenting financial systems and introducing new difficulties are “ultimately just an appendage to the conventional monetary system and not a game changer”.
The BIS has also criticized technology companies for choosing to participate in the payments sector, warning that some could become overly dominant due to the vast amount of data they have. This could result in excessively high costs for transferring money, he warned.
Expensive payments are “one of the most testamentary shortcomings” of the current system, the report adds.
“The concern is that when large technology companies enter the payments market, their access to user data from associated digital business lines may allow them to gain a dominant position, leading to even higher fees. those billed by credit and debit card companies currently, ”the BIS said.