Cryptocurrencies are widely used in financial crime, money laundering and ransomware attacks – regulating Bitcoin News

The Bank for International Settlements (BIS) says it is now clear that cryptocurrencies are speculative assets, not money, stressing that in many cases they are used “to facilitate money laundering, ransomware attacks and other financial crimes” .

BIS criticizes cryptocurrencies, Bitcoin

The Bank for International Settlements published its annual economic report on Wednesday, which deals with cryptocurrencies, particularly Bitcoin, as well as digital currencies from central banks (CBDCs).

The BIS stated that “several recent developments have put a number of potential innovations related to digital currencies high on central banks’ agendas”.

“The first of these is the growing attention Bitcoin and other cryptocurrencies are receiving,” the report said. “The second is the debate about stablecoins, and the third is the entry of big tech companies (big techs) into payment services and financial services in general.” The BIS continued:

It is now clear that cryptocurrencies are speculative assets rather than money and are used in many cases to facilitate money laundering, ransomware attacks, and other financial crimes.

The report also discusses stablecoins. Claiming that they are “only as good as the governance behind the promise of support,” the BIS noted that these coins “have the potential to fragment the liquidity of the monetary system and undermine the role of money as a coordination tool” .

Turning to Bitcoin, the largest cryptocurrency, the BIS said:

Bitcoin, in particular, has few redeeming properties of public interest when one takes into account its wasteful energy footprint.

The report discusses CBDCs in detail, noting that central banks are “fully involved in the development of CBDCs for retail and wholesale customers, along with other innovations to improve conventional payment systems”.

The BIS concluded: “In order to realize the full potential of CBDCs for more efficient cross-border payments, international cooperation will be of paramount importance. The collaboration on CBDC designs will also open up new avenues for central banks to counteract foreign currency substitution and strengthen currency sovereignty. “

What do you think of the BIS’s assessment of Bitcoin? Let us know in the comments section below.

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