The Basel Committee on Banking Supervision (BCBS) is a global standard setter for more than 45 banks and bank supervisors from 28 jurisdictions. In an official report, the BCBS slammed cryptocurrencies as a danger to the financial stability of the entire world, advising banks to deal with them at their own risk. It’s not the first time the cryptocurrency world has come under attack from a major institution, but every other time the industry survived – this time won’t be any different.
Cryptocurrencies are “Immature”
The BCBS launched its scathing attack on the crypto world by pointing out the same flaws that every other crypto hater in the world has ever done. The entire report feels very much like a childish attack on the crypto world by a jealous organization that wishes it came up with the idea. The report claims that cryptocurrencies are not an adequate store of value due to their immature and highly volatile nature and they do not perform the traditional functions of money. Additionally, the BCBS went on to say that cryptocurrencies are not tied to any world government – making them dangerous and risky.
Just Another Attack
This report from the BCBS is just another baseless attack on the crypto world. Like the others that have come before, the report will quickly fade away into the ether and be forgotten about. Had the report gone on to highlight the underlying technology and the benefits of the crypto and blockchain world, BCBS would have made a lot of new friends and made a name for itself as a forward-thinking body.
Crypto is “Evil Spawn”
Back in 2018, an ECB board member decided to label cryptocurrencies as an “evil spawn”. The rant from Benoît Cœuré went on to call Bitcoin an “extremely clever idea” but that “sadly, not every clever idea is a good idea.” If that wasn’t enough, JP Morgan has been attacking the industry since time began. However, last month it announced that it was creating its own cryptocurrency – the digital currency industry can’t be too bad then!
The crypto world is no stranger to being attacked, and this report from the BCBS isn’t going to cause any damage. If anything, it will do more harm for the BCBS in the long run. Visa’s CFS said cryptos are used by every crook and dirty politician out there, but companies are starting to drop Visa as a payment method and accept cryptos instead. BCBS needs to be careful not to fall down the same hole, as it’s not easy to escape from.