The Bank of International settlements (BIS) in the article “Cryptocurrencies: looking beyond the hype” has questioned their ability to function as money. Experts note that crypto cannot be scaled enough and it does not have three main criteria – “scalability, stability of value and trust in the finality of payments.”
BIS examined the ability of digital money to correspond with the users’ expectations. The research shows that decentralized technology is a bad substitute for a strong institutional support of money. Besides that, using blockchain to handle with a large amount of payments “bring the Internet to a halt” – it is required a processing power to implement such a transaction.
The article was published before the release of the full annual economic report of BIS. And despite a negative assessment of crypto in total, BIS also sees the prospect of blockchain in international transactions.