Central bank umbrella body criticizes crypto

Yesterday the BIS, the bank for central banks, pre-released the cryptocurrency chapter from its latest annual report. The Bank for International Settlements’ (BIS) primary aim is the pursuit of monetary and financial stability, and sixty central banks own it. Although the BIS sees significant issues with using cryptocurrency as money, it is more optimistic about the underlying blockchain technology.

Scalability

First on the list of issues was scalability and the concept of proof-of-work. This is the electricity-hungry method involved in adding a block of payments to a cryptocurrency. The report says ‘the quest for decentralized trust has quickly become an environmental disaster.’

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