TL;DR Breakdown
- BIS publish glowing report for crypto
- BIS reveals all of US will know about crypto in two years time
- Bank sends message to regulators
The Bank for International Settlement has published a glowing report for cryptocurrencies after its researchers conducted a comprehensive research for cryptos (BIS crypto research).
The BIS crypto research refuted several ideas that crypto investors predominantly invest in defiance of government-issued or fiat currencies. The published document disproved that claim.
“We disprove the hypothesis that cryptocurrency investors are motivated by distrust in fiat currencies or regulated finance, the document read at the beginning.
The BIS crypto research team also claims in their paper that crypto investors don’t stake their money in the death of fiat but are attracted to old-fashioned speculation, meaning that the area doesn’t need new regulation.
“From a policy perspective, the overall takeaway of our analysis is that as the objectives of investors are the same as those for other asset classes, so should be the regulation. Cryptocurrencies are not sought as an alternative to fiat currencies or regulated finance but instead are a niche digital speculation object, the document reads.
BIS crypto research reveals entire U.S. population to know about crypto in two years
Per the BIS crypto research report, knowledge about cryptocurrencies is becoming pervasive while ownership remains limited to a niche population. They note that in 2104, 40 percent of U.S. citizens were aware of at least one cryptocurrency (mainly Bitcoin).
The percentage increased to 70 percent in 2019, the research reveals. “If the trend continues, in one or two years, the entire U.S. population will recognize at least one cryptocurrency, the statement reads.
However, it acknowledges that the acceptance and usage of cryptos are not very high yet in the U.S.
Only 1.4 percent of the U.S. population owned at least one cryptocurrency in 2019, the research notes.
Message to regulators
The BIS is the report clearly stated that investors’ objectives are the same as those for other asset classes; for that reason, regulation of crypto should be similar to how other assets are being regulated.
“Better regulation may also be beneficial – quintessential in fact – for the industry when it comes to the basic security model of many cryptocurrencies, the paper read.
