After Inflation Fiasco, Central Banks Now Want to Monopolize Trust in Money With CBDC Push and Crypto Bashing

Banking Bitcoin Central Bank Cryptocurrency DeFi Financial Services
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Last updated:
Ad Disclosure
Ad Disclosure

We believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. However, this potential compensation never influences our analysis, opinions, or reviews. Our editorial content is created independently of our marketing partnerships, and our ratings are based solely on our established evaluation criteria. Read More
Author
Fredrik Vold
Author Categories
About Author

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Ad DisclosureWe believe in full transparency with our readers. Some of our content includes affiliate links, and we may earn a commission through these partnerships. Read more
Source: Adobe/rosinka79

 

As central banks across the globe are now admitting they failed to keep inflation under control and by sharply rising rates threaten to push economies into recession, they now claim that they are the main source of trust in the monetary system. 

The Bank for International Settlements (BIS), sometimes referred to as ‘the central bank of central banks’, is out with a new report where it bashes the crypto industry while promoting what it calls “a brighter vision of the future monetary system” through central bank digital currencies (CBDCs).

In the report, the BIS wrote that the monetary system of the future “must meet a number of high-level goals to serve society.” Specifically, the report stressed that a future CBDC must be “safe and stable,” and said “key entities must be held accountable for their actions.”

The BIS stressed that “at the heart of the monetary system stands the central bank” and “trust in the monetary system is ultimately
grounded in trust in the central bank.”

The institution is advocating for financial and payment “innovations grounded in trust in the central bank” and claims that “retaining this trust is at the core of central bank mandates.”

“The Bank of International Settlements recognizes Bitcoin is a competitor to central banks with this statement,” Bitcoin analyst Willy Woo reacted.

The BIS’ vision for future CBDCs was part of a chapter on “the future monetary system” in its wide-ranging Annual Economic Report 2022.

“Fast, reliable and cheap transactions should promote efficiency and financial inclusion, while users’ rights to privacy and control over data must be upheld,” the BIS report went on to say. It added that CBDCs “must be adaptable and open.”

“A decade hence, users may take realtime, low-cost payments for granted, and payments across borders may be as seamless as the cross-border exchange they support. Consumer choice in financial services should be increased, and innovation will continue to push the frontiers of what is possible,” the BIS wrote about the monetary system it envisions.

It went on to call its idea for future CBDCs “a brighter vision of the future monetary system.”

Commenting on cryptocurrencies as we know them today, the BIS report said recent turbulence in the market has revealed “structural flaws” in their design.

It claimed that these flaws are preventing crypto from “achieving the levels of stability, efficiency or integrity required for a monetary system.”

As an example of this, the report mentioned “the prevalence of stablecoins” in the crypto ecosystem, explaining that this indicates a need “to piggyback on the credibility provided by the unit of account issued by the central bank.”

It added that the collapse of Terra token has “underscored the weakness of a system that is sustained by selling coins for speculation.”

“Instead of serving society, crypto and DeFi are plagued by congestion, fragmentation and high rents, in addition to the immediate concerns about the risks of losses and financial instability,” the report said.

The BIS has for a long time worked on a so-called multi-CBDC project known as Project Dunbar, where the idea is to tie together CBDCs from multiple jurisdictions. It has stated that it ultimately envisions “a series of regional” multi-CBDC platforms with some level of interoperability between them.

In March this year, the BIS said that Project Dunbar so far has focused more on identifying problems than solving them, and that it has created “more questions than answers.”
____
Learn more: 
CBDCs Are Likely to Make You Less Anonymous
Central Banks Struggle With Privacy-Related CBDC Headaches

US Fed to Blame for Downturn, Large Crypto Players Have Responsibility Toward Ecosystem – FTX CEO
Use of Digital Euro as Form of Investment Can be Prevented – ECB Official

DeFi Could Rely On CBDC, But More Bridges With Centralized Finance Are Needed – Expert Panel
DeFi – CeFi Convergence & ‘Explosive’ Growth Are Coming – BIS Summit Panel

CBDC Shilling and Bitcoin Bashing Might Reach the G20 Level
IMF Chief Speaks of Crypto ‘Pyramid’ Concerns – But Also ‘Begs’ Not to Abandon Crypto Progress

More Articles

Finance News
Consumer Financial Protection Bureau Funding and Activities Suspended by New Head
Ruholamin Haqshanas
Ruholamin Haqshanas
2025-02-10 06:53:26
Altcoin News
Central African Republic’s Meme Coin Experiment Raises Suspicion
Shalini Nagarajan
Shalini Nagarajan
2025-02-10 06:28:10
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors