The Bank of International Settlements (BIS) Publishes Negative Report on Crypto

The Bank of International Settlements (BIS) published a mostly negative report on crypto called “Cryptocurrencies: looking beyond the hype.” The report criticizes much of crypto while noting the potential importance of the underlying technology. The only thing I would point out is that cryptocurrency is software, and thus many of the current issues (from the impact of mining to speeds for example) can potentially all be fixed with software updates moving forward.^[1]

For a detailed look at the report you should read the report yourself, if you just want an overview, I suggest AMBCrypto’s BIS Report – Cryptocurrency is an elusive promise.

Cryptocurrencies promise to replace trusted institutions with distributed ledger technology. Yet, looking beyond the hype, it is hard to identify a specific economic problem which they currently solve. Transactions are slow and costly, prone to congestion, and cannot scale with demand. The decentralised consensus behind the technology is also fragile and consumes vast amounts of energy. Still, distributed ledger technology could have promise in other applications. Policy responses need to prevent abuses while allowing further experimentation.

– Introduction to the Report

1. Cryptocurrencies: looking beyond the hype. The Bank of International Settlements.