BIS Says Crypto Weaknesses Have Materialized Following Market Sell-Off – Featured Bitcoin News

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'You just cannot defy gravity... At some point, you really have to face the music,' said the BIS chief about crypto. cryptocurrency bitcoin $BTC

The Bank of International Settlements , the global body for central banks, claims the weaknesses in crypto that were pointed out before “have pretty much materialized.” BIS General Manager Agustin Carstens opined: “You just cannot defy gravity … At some point, you really have to face the music.”The Bank of International Settlements has warned that a perceived danger of decentralized digital money is materializing.

“Structural flaws make the crypto universe unsuitable as the basis for a monetary system: it lacks a stable nominal anchor, while limits to its scalability result in fragmentation. Contrary to the decentralisation narrative, crypto often relies on unregulated intermediaries that pose financial risks,” the BIS report reads.

Carstens does not believe that the crypto market meltdown will cause a systemic crisis in the way that bad loans triggered the global financial crash. He detailed:

 

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