Central banks are stepping up the fight against cryptocurrencies

Central banks responded to cryptocurrencies a few weeks after the global banking regulator called for tougher rules to hold digital assets as a sign that the struggle to control the monetary system is intensifying.

In a report released Wednesday, the World Bank, the International Monetary Fund, argued that bitcoin had few repayment properties, abandoning stable currencies as an “addition” to the current monetary system, and warned that private innovation in payments was against the public good.

The hard-hitting report by central banks was still a clear signal that they were not ready to relinquish their key role in the global financial system.

It came days after Fabio Panetta, a European Central Bank politician working on his own digital euro, told the Financial Times that one of the main goals of the program to fight against the spread of digital coins created by companies of other nations.

In its report, BIS says: “Central banks are at the center of a rapid transformation of the financial sector և payment system. “Innovations such as cryptocurrencies, stable coins, high-tech enclosed garden ecosystems all tend to work against the public good that underlies the payment system.”

In contrast, the BIS endorses the development of digital currencies backed by central banks, saying they could be a tool for greater financial inclusion and lower high payment costs.

“Digital currencies of the Central Bank. offer the unique advantages of the central bank money. finality of calculations, liquidity և completeness. They are the advanced representation of money for the digital economy [and should be] “designed taking into account the public interest,” it said.

Cryptocurrency prices are under pressure as investors grow for fear that they will be regulated in China and elsewhere. Authorities in several major economies have recently stepped up efforts to curb the growing popularity of bitcoin և its peers amid fears that policymakers are losing control of the growing financial system.

In: price of bitcoin It fell to $ 30,000 for the first time since January, peaking in April when it hit $ 63,573.

“It is clear that cryptocurrencies are speculative assets, not money, in many cases they are used to launder money, ransomware attacks and other financial crimes,” said the BIS. “Bitcoin in particular has little to do with public interest, given its traces of useless energy.”

The World Financial Authority was also targeted stable coins, which cryptocurrencies were associated with other assets. The CIS says they are “trying to build trust by supporting in real currencies”, but in addition to fragmenting financial systems and creating new difficulties, they are “ultimately just an attachment to a conventional monetary system, not a game changer”.

The BIS also criticized technology companies for preferring to be involved in payments, warning that some may be overwhelmed by the sheer amount of data they have. This can lead to excessive transfer costs, he warns.

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

“The concern is that when large technology companies enter the payment market, their access to digital business data may allow them to dominate, leading to payments that are even higher than those currently charged by credit and debit card companies. The fees are: “, Said the BIS.

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