Cryptocurrency and ICO news 19.06.2018
Circle CEO disagrees with Bank of International Settlements
The Bank of International Settlements (BIS) has said that cryptocurrencies cannot scale to function as money, in an article published yesterday, June 17, as part of its annual economic report.
According to the BIS – an organization based in Switzerland made up of 60 of the world’s central banks – cryptocurrencies will not be able to scale to become a medium of exchange in a global economy. The BIS report outlines three key “shortcomings” that will prevent crypto from replacing money – these being “scalability, stability of value and trust in the finality of payments.” BIS criticizes the decentralization of cryptocurrencies as a flaw rather than a strength, alleging that “trust can evaporate at any time because of the fragility of the decentralised consensus through which transactions are recorded.”
At the same time, the CEO of Goldman-backed firm Circle, Jeremy Allaire said that every currency in the world will have its own cryptocurrency version and “it seems inevitable at this point”.
Allaire’s start-up offers a blockchain-powered app that lets people send money to each other for free. The $3 billion company is backed by U.S. investment bank Goldman Sachs and Chinese internet giant Baidu. Earlier this year they bought cryptocurrency exchange Poloniex.
Circle recently said it wants to introduce a stable coin pegged to the U.S. dollar, called “USD Coin.”