The Bank for International Settlements (BIS), a global financial institution owned by some of the world’s largest central banks, is trying to dispel the theory that cryptocurrency ownership is linked to mistrust of traditional finance.
Thursday, BIS published Research paper on social and economic drivers of cryptocurrency investments in the United States. Using representative data from the US Consumer Payment Choice Survey, the Bank for International Settlements (BIS) argued that distrust of fiat currencies such as the US dollar has nothing to do with investors’ motivation to hold cryptocurrencies such as bitcoin (BTC), stating:
“Demand for cryptocurrencies is not driven by mistrust of the cash or financial industry, since there are no differences in the perceived security of cash and offline and online banking. We can therefore disprove the hypothesis that cryptocurrencies are needed as an alternative to fiat currencies or regulated finance.”
The authority stressed that cryptocurrencies are not being sought as an alternative to fiat currencies or regulated finance, but rather as a “specialized digital object of speculation.” The BIS noted that from a policy perspective, the overall result of the analysis is that investors’ goals are “the same as those of other asset classes, so regulation should be.”
The BIS paper also identifies key correlations between crypto investment options, education level, and income, indicating that cryptocurrency holders are “generally more educated than average.” ether (ETH) And the XRP Investors showed the highest level of education in the BIS analysis, while investors who own Litecoin (LTC) was the least educated, with bitcoin owners rated in the middle.
The new report brings great importance because cryptocurrencies like Bitcoin do not pose any threat to traditional financing tools because the demand for cryptocurrencies is not driven by mistrust of cash. A number of global authorities and institutions have previously expressed concerns about Bitcoin’s ability to take advantage of the global mistrust of traditional finance.
In late December, Rocher Sharma of Morgan Stanley Investment argued that the era of the US dollar الدولار It will most likely end due to global distrust In traditional finance, while bitcoin would benefit from a lack of trust.