Bank for International Settlements: Cryptocurrency is only an addition to Fiat

The Bank for International Settlements (BIS) has provided another report on digital currencies.

The study, in particular, notes that digital assets developed by central banks (CBDC) can only become an addition to the already existing fiat means of payment, but not completely replace them. However, the authors acknowledge that the availability of alternative remedies in the face of global instability is a necessity. In particular, the total spread of coronavirus infection has highlighted the importance of the population’s access to a variety of means of payment. “It is difficult to predict the situation now, but central banks will continue to explore the potential of digital currencies in the long term,” write BIS specialists.

Among the leaders in the development of digital assets, the report lists countries such as China, Sweden and Canada. “Given the novelty of CBDCs, it is natural that approaches to working with them will differ in different countries in accordance with economic circumstances and user priorities,” the conclusion says.