BIS released a part of their report on cryptocurrency. Of course, it was negative. What is interesting is they did find components cryptocurrency interesting and SHOULD be implemented into CBDCs.
In this video I go trhough why this is wrong and how the BIS doesnt even ackknowledge (know) how the monetary system operates.
https://cryptobriefing.com/bis-release-report-criticizing-crypto/
▶️ 3Speak
We all know that they want to maintain control and I do agree that the technology is still being developed. I wonder how it will look like a few decades down the road and I think there will be a lot of projects that do fail.
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Failure is a part of technological advancement.
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Logically, traditional banking is going to find many defects in Cryptocurrencies since how they cannot have control over transactions, that is what causes them a great inconvenience.
Summary:
In this episode, the speaker discusses the recent report by the Bank of International Settlements (BIS) that criticizes cryptocurrencies for their structural flaws while indicating an interest in incorporating crypto innovations into Central Bank Digital Currencies (CBDCs). The speaker challenges the BIS's claims about the monetary system, highlighting the flaws in traditional banking systems during the Great Financial Crisis. The discussion delves into the significance of blockchain technology, the evolution of stablecoins, the role of miners and validators in decentralized systems, and the necessity of building robust infrastructure in the crypto space despite expected failures. The speaker emphasizes the need to understand the complexities of the current financial and monetary system to pave the way for decentralized solutions.
Detailed Article:
The episode starts by discussing the recent BIS report criticizing cryptocurrencies for their structural flaws and lack of stability. The speaker questions the BIS's authority and credibility, emphasizing how traditional banking systems faced significant challenges during the Great Financial Crisis, pointing out flaws and failures within the regulated banking sector.
Furthermore, the speaker delves into the essence of the monetary system, highlighting that central banks primarily deal with reserves, not actual money. Drawing on past statements by figures like Alan Greenspan, the speaker argues that central banks struggle to comprehend and manage the dynamic financial landscape outside their traditional scope.
The episode also addresses the BIS's interest in incorporating crypto innovations into CBDCs, pointing out the irony of traditional institutions embracing blockchain technology while rejecting cryptocurrencies. The speaker questions the trustworthiness of centralized systems like CBDCs, contrasting them with decentralized networks run by miners and validators in the crypto space.
Moreover, the discussion emphasizes the evolution of stablecoins, DeFi, and the gradual establishment of infrastructure in the crypto sphere over the last few years. The speaker acknowledges the inevitability of failures and challenges in this nascent industry, paralleling it with the evolution of internet browsers and search engines over time.
The overarching theme underscores the importance of understanding the core principles of blockchain, decentralization, and trust in the context of the financial and monetary systems. The speaker advocates for a shift towards decentralized solutions that eliminate the need for traditional banking intermediaries, emphasizing the potential for blockchain to revolutionize how value is exchanged and managed globally.
In conclusion, the episode serves as a critical analysis of the BIS report, advocating for a deeper understanding of blockchain technology, decentralized finance, and the gradual transformation of the monetary system towards more transparent and resilient frameworks.
Notice: This is an AI-generated summary based on a transcript of the video. The summarization of the videos in this channel was requested/approved by the channel owner.