Specialists at the Bank for International Settlements (BIS) have said in the organization's "Annual Economic Report" that the basis of future innovative monetary systems will be CBDCs, not cryptocurrencies with their systemic flaws.
According to them, recent events have revealed a large gap between the vision of cryptocurrencies and reality.
BIS experts have pointed out that the collapse of the stablecoin TerraUSD and its associated LUNA token "has underscored the weakness of a system that is sustained by selling coins for speculation."
According to the report:
"It is now becoming clear that crypto and DeFi have deeper structural limitations that prevent them from achieving the levels of efficiency, stability or integrity required for an adequate monetary system. In particular, the crypto universe lacks a nominal anchor, which it tries to import, imperfectly, through stablecoins."
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BIS specialists have also highlighted the tendency of the cryptocurrency sector towards fragmentation and the use of centralized intermediaries. Blockchain applications cannot scale without compromising security, as evidenced by their "congestion and excessive fees."
According to the bank's experts, the central bank-based monetary system "has served society well."