The Bank of International Settlements (BIS) recently showed skepticism about the potential role of crypto in the global monetary framework, citing flaws that originate from the incentives of validators rather than the technology itself.
In a comprehensive report, the BIS argued that the reality of the crypto ecosystem deviates significantly from the vision of decentralization commonly championed by enthusiasts.
The bank pointed to the 2022 collapse of the FTX crypto exchange as a stark reminder of this dichotomy, stating:
“Cryptocurrencies often boast of decentralization, yet we see the rise of new centralized intermediaries that have become instrumental in directing capital flow into the crypto world.”