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The bigger Cryptocurrencies get, the worse they perform


The BIS has told central banks to think hard about the potential risks before issuing their own cryptocurrencies.  No central bank has issued a digital currency, though the Riksbank in Sweden, where the use of cash has fallen, is studying a retail e-krona for small payments.

The BIS has told central banks to think hard about the potential risks before issuing their own cryptocurrencies. No central bank has issued a digital currency, though the Riksbank in Sweden, where the use of cash has fallen, is studying a retail e-krona for small payments.

LONDON: Cryptocurrencies are not scalable and are more likely to suffer a breakdown in trust and efficiency the greater the number of people using them, the Bank of International Settlements (BIS)said on Sunday in its latest warning about the rise of virtual currencies.

For any form of money to work across large networks it requires trust in the stability of its value and in its ability to scale efficiently, the BIS, an umbrella group for the world's central banks, said in its annual report.

Cryptocurrency , Banking , Economy

   

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