The Bank for International Settlements (BIS), a global financial institution owned by some of the largest central banks in the world, is trying to eliminate the theory that cryptocurrency ownership is related to distrust of traditional finance.
Thursday, the Bank for International Settlements Publish A paper on the socio-economic drivers of U.S. cryptocurrency investment. BIS uses representative data from the US Consumer Payment Choice Survey to believe that distrust of legal currencies such as the U.S. dollar has nothing to do with investors’ motivation to hold cryptocurrencies such as Bitcoin.Bitcoin), description:
“The demand for cryptocurrencies is not driven by distrust of cash or the financial industry, because cash is no different from the perceived security of offline and online banking. Therefore, we can initially refute that cryptocurrencies are considered legal tender or regulated The hypothesis of financial alternatives.”
The authorities emphasized that cryptocurrency is not a substitute for legal tender or regulated finance, but a kind of “niche digital speculation object.” BIS points out that from a policy perspective, the overall conclusion of the analysis is that investors’ goals “are the same as those of other asset classes, and regulation should be the same.”
The BIS paper also outlines the main correlations between crypto investment choices and education and income levels, indicating that cryptocurrency owners “generally have higher than average education levels”. Ether (Ethereum) with Ripple Investors showed the highest level of education in the BIS analysis, while those with Litecoin (LTC) Is the least educated, with Bitcoin owners in the middle.
The new report brings an important correlation that cryptocurrencies like Bitcoin do not pose a threat to traditional financial instruments, because crypto demand is not driven by distrust of cash. Many global authorities and institutions have previously expressed concern about Bitcoin’s ability to take advantage of global distrust of traditional finance.
In late December, Ruchir Sharma, an investor in Morgan Stanley, believed that the dollar’s rule May end due to global mistrust In traditional finance, Bitcoin will take advantage of lack of confidence.