The Bank for International Settlements (BIS), an international financial body is making effort to change the notion that investment in cryptocurrencies is a direct effect of the shift in the confidence level of people in respect to conventional banking methods.
The international body which is owned by major central banks of the world had in its latest publication focused on the social and economic factors that spurred investments in cryptocurrencies. Based on the information from the Consumer Payment Choice of the U.S, BIS asserted that lack of trust in fiat money was not the spur for cryptocurrency investments.
The BIS stated that there were no major distinctions in having financial transactions either on the internet or offline. In line with this, it can be posited that the cryptocurrency ecosystem did not save the day in the financial world as regards trust on the system or its methodologies.The financial body emphasized that cryptocurrencies were not looked for because they were replacements of fiat monies. From the the BIS point of view however, investors perceive cryptocurrencies as every other investable holding.
The BIS publication also made reference to the relationship between the choice to invest in cryptocurrencies and the educational attainment and financial worth of investors. From the analysis, cryptocurrency investors were educationally sound. However, Ether and XRP stakeholders were the highest in terms of educational attainment.
The BIS latest findings is of prime importance as it has shown that the demand for cryptocurrency was not on the grounds of lack of trust in real money. The findings ameliorates concerns raised by some financial authorities and bodies who hitherto saw Bitcoin’s wide adoption as answering to the trust issues arising from traditional financing. In December last year, a top investment executive asserted that Bitcoin would take advantage of the growing lack of trust in traditional financing methods to gain ground.
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