Crypto-currencies 'uncharted waters' - Central Bank of all Central Banks

The Revolution

BIS, the Bank of International Settlements is also known as a central bank of all central banks, stated in their latest report that the cryptocurrencies could be created by Central Banks and as such could revolutionize the global financial system.
They also believe such move would carry significant risks, pointing to a significant fraud risk and cyber attacks.

"General purpose central bank digital currencies could revolutionise the way money is provided and the role of central banks in the financial system"

The bank called for introduction of a robust mitigation methods, before such crypto currencies are introduced and created.

"The potential effect of fraud could be more significant because of the ease with which large amounts could be transferred electronically,"

The bank however sees huge advantages of cryptocurrencies:

"Central bank digital currencies could help make settling trades of securities and foreign exchange more efficient in the future,"

Banks are not ready yet

The report says digital currencies could change the way money is offered, strengthen payment systems, and be a reliable method to carry out transactions if the use of cash decreases.

"But more work and experimentation would be needed to explore these benefits."

Report just a starting point of a bigger conversation

"But these are uncharted waters, with potential risks. This report is a starting point for further discussion and research and will help countries make choices given their own circumstances."

Legislation and regulation behind the reality

I can't stop thinking that the regulations and legislation simply can't keep up with the reality. I guess it was always like that, however changes had never happened that fast. The crypto world brings new challenges every week and maybe that's a positive sign that the regulation took the Wait and Watch approach rather than jumping in front of bandwagon risking delaying the technological progress.