Today, a study outed by the Bank for International Settlements, a financial institution funded and owned by 60 central banks around the world, titled “Cryptocurrencies: Looking Beyond The Hype” exposed what central banks thought about the cryptocurrency world and puts it in perspective for all of us. But, even if the report did catch some of the vulnerabilities that cryptocurrencies have, it was also too much one-sided and unbalanced, offering no positive side to the existence of them, even mentioning that they were
“USELESS, UNSAFE AND DIRTY”
This is the view that central banks have of the world of cryptocurrencies. But for the cryptocurrency community, and the investors and people that live in cryptocurrencies and blockchain every day, this one-sidedness could be a symptom of something more: Fear.
Bryan Kelly, a cryptocurrency expert and founder of BCKM, an investment firm that focuses on cryptocurrency fund investments, said today on CNBC’s Fast Money, that central banks are downright scared of cryptocurrencies due to three main reasons: First, cryptocurrencies constitute an existential threat to the banks model of business, this is, that the sole purpose of its existence is to make banks obsolete. The second reason is the natural fear of the substitution of teh old technology with the new money, something that he calls “old guard vs new guard”; and the third reason is the peer to peer nature of cryptocurrencies cuts the middleman, a thing that also relegates banks from their power position to no purpose institutions.
Other personalities in the cryptocurrency world have also already expressed their thought about this report. Monica Quaintance, engineer and adoption strategist at Kadena LLC, a company that prepares blockchain solutions for enterprises, has declared that even in some allegations of the report are partly true, the industry is still in its infant stages, and it is still too early to analyze it and make these grandiose statements as the ones made in the report.
The punch line in all this is that even central banks are taking cryptocurrencies into account to formulate reports and make an analysis, a thing that would have been unthinkable just three years ago; a symptom of things that may come. Truly, times are changing.