BIS: Is Bitcoin Not a Means of Payment?
Our regular readers know that major figures from the world of finance and the international economy regularly speak out about cryptocurrencies. In particular, about Bitcoin. For example, recently we published a material in which we talked about the “potential dangers of Bitcoin.” And today we will again look at the first coin of the industry from the other side, having studied the opinion of the BIS. This is the Bank for International Settlements, the head of which spoke about Bitcoin today and said that its potential as a payment instrument has been exhausted. What is meant? Can the first currency be used for serious payments, or is it better to find an alternative? Let’s figure it out.
Who is behind the statement
The head of BIS is a prominent figure in the industry. Benoit Kere was interviewed by Bloomberg and noted that at the moment Bitcoin is an unsuccessful means of payment. Volatility was named as the main reason. That is, high variability in value. And this is difficult to deny, since the exchange rate of the first currency is really not stable. There are real-life examples when users planned to purchase, but could not complete the purchase due to unexpected changes in the value of the currency. And there are a lot of such cases. Today Bitcoin costs 55 thousand, tomorrow it will be 57 or 53 thousand dollars. Volatility is hard to deny.
But Benoit Kere does not deny the obvious benefits of BTC as an investment vehicle. According to him, the first cryptocurrency is an excellent asset for long-distance investment. The coin has already found its purpose as a long-term asset. But Bitcoin is not suitable for everyday use. Is it really? To be honest, there is indeed logic in this position. Today, there are indeed many digital coins that perform better in everyday use. Benoit Kere also thinks.
What alternatives do they see in BIS?
According to the expert, cryptocurrency for every day is stablecoins. Pegged assets guarantee stability and are as easy to use as possible. Today there are many CBDCs from individual states. Even leading countries are developing their own digital assets that can be used permanently. It is a great solution to combine stability with the benefits of blockchain. In this, Bitcoin obviously loses. But don’t think that CBDCs are flawless. Not at all. They are also multifaceted tools, with their own strengths and weaknesses. Among the latter, a precarious legal status and a high percentage of fraud can be distinguished.
But do not think that this article and the statement of the head of BIS are a campaign against the first cryptocurrency. Each digital coin has its own purpose. And Bitcoin has its own personal mission – to provide long-term and profitable objectives. But if you are looking for a digital asset that you plan to use here and now, you definitely need to look towards alternative coins. Bitcoin has long passed from the status of a coin that is used to pay for pizza. Today it is the largest cryptocurrency that is leading the industry and shaping the future of the digital economy. BIS, by the way, carefully examines new stablecoins and studies their nature in detail. The head of the company believes that, like any other digital asset, each CBDC will find its own task, the solution of which is required by residents of a particular country.
Now you know how to properly prioritize the use of digital assets. The main thing is to follow the news of the cryptoindustry. To stay up to date with the latest developments in the world of Blockchain and high technologies, stay with us. We publish only high-quality and interesting material. Thank you for attention. Good luck!