The Central Banks' Bank (BIS) Hates Bitcoin - Which is Reassuring

Remigio Civitarese
Giugno 20, 2018

The Bank of International Settlement - an organisation that provides financial services created to support the activities of central banks and other monetary authorities, as well as operating as a think-tank and analyst on financial matters - has said that it's "hard to identify a specific economic problem" that cryptocurrencies solve, and rubbished the prospects of the technology underpinning them becoming mainstream payments technology any time soon.

The Bank of International Settlements (BIS), a transnational institution owned by and comprised of central banks that seeks to "fosters international monetary and financial cooperation and serves as a bank for central banks", recently published its quarterly review of "International banking and financial market developments" for June 2018.

Don't bet on bitcoin ever replacing the dollar or other traditional currencies as everyday money.

In turn, the journalist of Bloomberg's Edward Robinson writes that the BMR weighing the pros and cons of cryptocurrencies at a crucial moment for them. For example, at the time of writing, the Bitcoin blockchain was growing at around 50 GB per year and stood at roughly 170 GB.

But the problem goes far beyond storage capacity, and extends to processing capacity, as only supercomputers could keep up with the verification of incoming transactions. There are now some 17 million bitcoins in circulation.

In one of its most poignant findings, the BIS analyzed what it would take for the blockchain software underpinning Bitcoin to process the digital retail transactions now handled by national payment systems.

"The associated communication volumes could bring the Internet to a halt", the report concluded.

Are you looking for a comprehensive summary of the most idiotic nocoiner propaganda against Bitcoin?

The BIS also stated some of blockchain technology advantages by saying that the technology offers quick cross-border payments with more efficient way.

The assessment was made in a 24-page report Sunday by Switzerland's Bank for International Settlements, an agency considered a central bank for central banks.

The bank also revealed that there are chances for the central bank to launch digital currencies, which several central banks are contemplating.

"In mainstream payment systems, once an individual payment makes its way through the national payment system and ultimately through the central bank books, it can not be revoked".

Shin says that here is talking about "uncertainty about the finality of individual payments, as well as trust in the value of individual cryptocurrencies". "Yet while the probability that a payment is final increases with the number of subsequent ledger updates, it never reaches 100%".

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE