Cryptocurrencies vs Central Banks - an objective comparison

Despite showing tremendous promise, the cryptocurrency industry, as analysed by the Bank of International Settlements (BIS), abounds with issues that prevent it from solving specific economic problems. However, comparison of the industry to a well-established, matured, global- and centrally-controlled monetary system is not only unsound in its reasoning, but also inappropriate. In fact, we find it troubling that the BIS would go through such lengths to discredit and negatively taint what it seems to portray as a competitor to the throne of monetary policy, the central banking system.

The report is not only entirely one sided, keeping hidden from sight the revolutionary concepts cryptocurrencies introduce into mainstream society, but also misleading in the presumption that the existing monetary system has provided an irrefutable public good to society and its people. There is always two sides to every story.  In this write up we attempt to highlight points we believe the BIS failed to mention about the potential of cryptocurrencies and the impact of its, so called, achievement of “safeguarding society’s economic and political interest in a stable currency”. For those who have not perused the BIS Chapter V. Report “Cryptocurrencies: Looking Beyond the Hype!”, download it here.