bank awareness of international settlements against krypto money
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day I want to write an article about the concerns of the bank of international about the existence of crypto currency. which are increasingly in demand by the public.
in the revelation of the Bank of International Settlements an organization overseeing central banks around the world, warned of increasing use of virtual currency on Sunday, 18th. (6/18/2018).
according to BIS, cryptocurrency currencies can not be measured and will be more susceptible to conflicts related to trust and efficiency if more and more people are using.
based on annual reports issued by BIS, various forms or types of money can function on a large scale if the value is stable and can function efficiently.
bIS assumes, the belief of the use of crypto currency may simply disappear because of the fragility of this decentralized virtual currency type network system.
these networks are also vulnerable to transaction bottlenecks as the use of these currencies increases.
BIS records, the high value of transactions that occur in the currency of bitcoin digital as well as the number of transactions that can be handled by bitcoin every second.
"Trust can evaporate at any time due to fragility and consensus when transactions are recorded," the Swiss-based organization said in a written statement.
"This raises the question of payment of individual transactions, krypto currency can also stop functioning so that the value is lost," continued the description.
head of BIS Research Hyun Song Shin said, unlike state money that has value because it has users, most people use pure crypto currency for the purpose of speculation.
"Without users, it (the currency) will just be a token of no valuethis applies equally to paper sheets with face patches on it, as well as digital tokens, "he says comparing the virtual currency with baseball or tamagotchi cards.
user dependence on miners to record and verify transactions is also considered BIS as a weakness of the krypto currency, as it requires enormous and overpriced energy.
then they also added BIS also warned central banks around the world to rethink potential risks before issuing their own crypto currency.
they also stressed the need for rules governing the krypto currency that applies globally. Peringatakan related crypto currency itself has emerged since the value of crypto currency jumped earlier this year and attracted the interest of many parties.
in addition, through its financial statements BIS also said necessary regulations related to the use of digital currencies that apply globally.
This regulation is directed to financial institutions as well as companies providing services through the krypto currency.