The Bank for International Settlements (BIS) criticizes cryptocurrency systems, focusing on high and unstable transaction fees and the challenges surrounding the closure of LiteBit.
Criticism of Fees in Cryptocurrency
Recent disputes over crypto data access and interchange fees highlight network control issues. According to Agnieszka Haman, director of financial stability at BIS: “High and variable transaction costs, poor security and fraud at exchanges, and vulnerability to debasement are persistent challenges we see within crypto systems.”
Reducing Dependence on Centralized Systems
Layer 2 (L2) bitcoin protocols are attracting DeFi flows, reducing reliance on centralized custodians. Financial markets react to shifts in BTC liquidity from wrap derivatives to L2-secured assets.
Regulatory Measures and Market Volatility
Previous regulatory actions, such as the closure of LiteBit, show direct impacts on fee structures. The growth of L2 echoes past DeFi shifts toward decentralized solutions. Experts from Kanalcoin suggest that real-time data tracking and transparent fees may drive future adoption.
Criticism from international financial organizations highlights the need for improved transparency and reduced fees to enhance trust in cryptocurrency systems. This is also linked to regulatory challenges that impact the stability and development of the crypto market.
