A few weeks after the establishment of the global banking regulator, the central bank launched a counterattack against cryptocurrencies Call for stricter rules Holding digital assets shows that the struggle to control the monetary system is escalating.

In a report released on Wednesday, the Bank for International Settlements, a global central banking institution, believed that Bitcoin had almost no redemption function, regarded stablecoins as an “attachment” of the current monetary system, and warned that private innovations in the payment field are against the public interest.

This strongly worded report is the clearest signal from central banks to date that they are not ready to give up their key role in the global financial system.

A few days ago, European Central Bank policy maker Fabio Panetta, who was responsible for developing his own digital euro, told the Financial Times that one of the main goals of the project was Combating the spread of digital currency Created by other countries and companies.

The Bank for International Settlements stated in its report: “The central bank is at the center of the rapid transformation of the financial sector and payment system. Innovations such as cryptocurrency, stablecoins, and the walled garden ecosystem of large technology companies tend to go against the public interest elements that underpin the payment system. .”

In contrast, the Bank for International Settlements supports the development of digital currencies backed by central banks, claiming that they can be tools to achieve greater financial inclusion and reduce high payment costs.

“Central Bank Digital Currency… Provides the unique advantages of central bank currency in digital form: settlement certainty, liquidity and completeness. They are high-level representatives of digital economic currencies [and should be] The public interest was taken into consideration when designing,” it said.

As investors are increasingly worried that they will face increasingly stringent regulations in China and other countries, cryptocurrency prices are under pressure. Fearing that policymakers are losing control of more and more financial systems, authorities in several major economies have recently stepped up their efforts to curb the increasing popularity of Bitcoin and its peers.

This Bitcoin price After reaching a peak of $63,573 in April, it fell below $30,000 on Tuesday for the first time since January.

“It is clear that cryptocurrencies are speculative assets rather than currencies, and in many cases are used to facilitate money laundering, ransomware attacks and other financial crimes,” said the Bank for International Settlements. “Especially Bitcoin, when considering its wasteful energy footprint, there is almost no redeemable public interest attribute.”

Global financial authorities are also targeting Stablecoin, Where cryptocurrencies are linked to other assets. The Bank for International Settlements stated that they “try to increase credibility by backing up with real money”, but in addition to decentralizing the financial system and introducing new difficulties, they “end up being just an appendage of the traditional monetary system, not the rules of the game. Changer”.

The Bank for International Settlements also criticized technology companies that choose to get involved in the payments industry and warned that some companies may become too dominant because of their large amounts of data. It warned that this could lead to excessive transfer costs.

The report added that expensive payments are “one of the most stubborn shortcomings” of the current system.

“The worry is that when large technology companies enter the payment market, their acquisition of user data from related digital business lines may give them a dominant position, resulting in charges that are even higher than those currently charged by credit and debit card companies.,” The Bank for International Settlements said.

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