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Bitcoin is bad for the planet, according to BIS

Bitcoin

TL;DR Breakdown

  • The international payments bank talks about Bitcoin in its annual financial report.
  • Central banks to create their tokens but remain linked to the decentralized market.

Cryptocurrencies such as Bitcoin went from being an unknown virtual currency in 2008 to being among the most talked about in 2021. Bitcoin has received support worldwide; however, not all central authorities support it.

The Bank for International Settlements believes that Bitcoin is a speculative asset, which consumes a lot of energy and is used for frauds. The central authority clarifies these tokens are used for money laundering and virtual scams. BIS also says that BTC has little public interest benefit in its annual economic report.

The BIS represents an international organization that works with the central bank of each country. The BIS objective is to support financial cooperation in the world so the economy is stable.

BIS mentions Bitcoin in annual financial report

Bitcoin

Every year the Bank for International Settlements makes a financial report with the central banks of each region. In 2021 the organization spoke about cryptocurrencies, especially Bitcoin, because of the fame it has earned. BIS says that cryptocurrencies are speculative and not real money like the dollar, euro, etc.

BIS said that cryptocurrencies have in the past fueled ransomware attacks, money laundering, and other crimes. In this way, he recalls the cyber-attack that affected a gas supply company in South Texas.

The report continued with BIS saying that Bitcoin has left an indelible mark on its energy consumption. According to University of Cambridge researchers, the BTC network consumes as much energy as the Netherlands. The damage caused by cryptocurrency mining is undoubtedly high, but it is not fatal for the environment.

Cryptocurrency Regulators

Besides the Bank for International Settlements, cryptocurrencies are surrounded by regulators almost worldwide. Many of these organizations claim that Bitcoin is very volatile, so they want to ban its trade. In early June, a BPI-based banking regulator spoke about the strict rules for banks that use cryptocurrencies.

The BIS also analyzed the central bank digital currencies cases, pointing them out as stable currencies. However, BIS clarifies this does not change the market’s rules because they are still virtual currencies. This happens because every stable token, like USDT, is backed by the crypto market.

The Bank for International Settlements’ announcement coincides with those indicated by each central bank. The fight against cryptocurrencies persists, and could affect the market scalability. BTC continues to maintain its value between $30,000 – $40,000 in a regulatory landscape.

Carisbel Guaramato

Carisbel Guaramato

An avid content creator for over 4 years, Carisbel spends her time on blogs and technology news. She honed her skills as a social communicator and now finds crypto and blockchain news events worldwide for transmission through Cryptopolitan's neutral and incisive way.

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