A recent report from the Bank for International Settlements (BIS) raises questions about the influence of Bitcoin and other cryptocurrencies on financial flows and the economy.
Key Findings of the Report
The Bank for International Settlements published a paper titled 'Empirical Analysis of Cross-Border Bitcoin, Ethereum and Stablecoin Flows.' The report examines cryptocurrency transactions across countries based on data from 184 countries from 2017 to mid-2024. The BIS noted that capital flow management measures had little impact on cryptocurrency transactions.
Dual Role of Cryptocurrencies
According to the BIS, cryptocurrencies like Bitcoin serve both as speculative investment assets and trading vehicles. This confirms their growing popularity among market participants in various countries.
Growth in Stablecoin Usage
The report also highlights that stablecoins are becoming more prominent in emerging markets, where traditional financial channels are costly. High demand for fast transactions and low transfer costs contribute to the preference for stablecoins in these regions.
The Bank for International Settlements concluded that the impact of cryptocurrencies on financial inclusion and economic stability requires further investigation and reevaluation.
