BIS economists recommend regulatory authorities worldwide 3 crypto guidelines for acceptance-regulation

Economists of the Bank for international payment compensation (BIZ) have recommended three guidelines that could take regulatory authorities worldwide to deal with the risks of cryptocurrencies. "The authorities can now consider a variety of political approaches and at the same time work to improve the existing monetary system in the public interest," they advised.

biz economists discuss crypto guidelines

The Bank for International Payment Compensation (BIZ) published a bulletin last week entitled "Addressing the Risks in Crypto: Layouting the Options".

The report written by the BIZ economists Matteo Aquilina, Jon Frost and Andreas Schrimpf discussed the risks associated with cryptocurrencies and the various options that are available to meet the supervisory authorities and central banks to counter these risks.

The authors outlined "three possible action lines". The first is to "ban certain crypto activities". Another option is to "isolate crypto from tradfi [traditional finance] and the real economy." The third is to "regulate the sector similar to Tradfi". However, the report makes it clear that the three options could not be mutually excluded and "selectively combined in order to reduce the risks emitted by crypto activities".

The biz economists found that the cryptoma markets "experienced a remarkable series of booms and broken, which have often led to great losses for investors", but came to the conclusion that "this failure has not yet been overlooked on the traditional financial system or the real economy". Nevertheless, they warn:

There is no guarantee that you will not do this in the future, since Defi (decentralized financing) and tradfi are increasingly intertwined.

"The authorities can now consider a variety of political approaches and at the same time work to improve the existing monetary system in the public interest," concludes the biz report.

What do you think of the cryptopolitical recommendations of the biz economists? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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