Bank for International Settlements: Private cryptocurrencies are dangerous for state currencies


06/24/2021

The Bank for International Settlements (BIS) said it fully supports the efforts of nations around the world to develop central bank digital currencies and the need to modernise financial systems, Reuters wrote.



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The BIS, known as the "central bank of central banks", helps regulators coordinate discussions on the issue. On June 23, it presented its recommendations on what digital dollars, euros, yen and yuan should look like. 

Governments need to fight not to lose control of public money in the future, according to the Bank for International Settlements.

The threat to the issuing powers of financial authorities around the world comes from the emergence of bitcoin and cryptocurrencies such as Diem, which is backed by US-based Faceebok. 

It, like other such companies, has at its disposal a huge social media user base that could provide control over the digital money sphere, BIS spokesman Benoît Cœuré pointed out. "And you don't want that, governments don't want that," he explained.

The Bank for International Settlements estimates that the authorities of at least 56 countries, home to about a fifth of the world's population, are now considering introducing a digital currency.

source: reuters.com