- The Bank for International Settlements (BIS), a worldwide financial body supported by some of the world’s most powerful central banks, is working to dispel the misconception that cryptocurrency ownership is linked to a lack of faith in traditional banking
- Investors in Ether (ETH) and XRP had the highest levels of education, while those in Litecoin (LTC) had the lowest, with Bitcoin owners in the middle
- In late December, Morgan Stanley Investments’ Ruchir Sharma predicted that the US dollar’s reign will come to an end due to global mistrust of traditional banking, with Bitcoin profiting from the lack of confidence
The Bank for International Settlements (BIS), a global financial organization backed by some of the world’s most powerful central banks, is attempting to debunk the myth that cryptocurrency ownership is connected to traditional finance mistrust. The Bank of International Settlements (BIS) released a study on the socioeconomic drivers of cryptocurrency investments in the United States on Thursday.
BIS argued that investor motivation to hold cryptocurrencies like Bitcoin (BTC) is not driven by distrust in fiat currencies like the US dollar, citing representative data from the US Survey of Consumer Payment Choice, stating: Demand for cryptocurrencies is not driven by distrust in cash or the financial industry, given that there are no differences in the perceived security of cash and cryptocurrencies. As a result, we can rule out the possibility that cryptocurrencies are being used as a substitute for fiat currency or regulated finance.
The authorities emphasized that cryptocurrencies are a niche digital speculative item, not a replacement for fiat currency or regulated finance. The general takeaway of the research, according to BIS, is that investors’ interests are the same as those for other asset classes, and that regulation should be the same as well. The BIS research also shows significant links between crypto investment preferences and education and income, implying that cryptocurrency investors are usually more educated than the general public. In the BIS research, investors in Ether (ETH) and XRP had the greatest education levels, while those who owned Litecoin (LTC) had the lowest, with Bitcoin owners in the center.
The new research highlights the fact that cryptocurrencies such as Bitcoin do not represent a danger to traditional financial instruments, as crypto demand is not fueled by a lack of faith in the currency. Bitcoin’s capacity to profit from worldwide skepticism in traditional banking has been a source of concern for a number of global authorities and organizations. Ruchir Sharma of Morgan Stanley Investments stated in late December that the U.S. dollar’s reign would likely come to an end owing to worldwide skepticism in traditional banking, while Bitcoin would profit from the lack of trust.