BIS stated that authorities can take three different approaches to the cryptocurrency industry.
According to The Bank of International Settlements (BIS), authorities can regulate, control or ban the industry altogether.
BIS Publishes Its New Report
According to the new report that addresses crypto risks, the global group of central bankers has created an alternative with the CBDC to “promote robust innovation.”
The BIS noted that each of the three approaches has several advantages and disadvantages. He stated that these approaches can be used in some places according to different risks.
Emphasizing that banning crypto is an “extreme option” and would mean limiting innovation, the report said that banning decentralized activities is also difficult. Although there is a possibility that intermediary institutions may be banned, this time such activities may continue to operate in other jurisdictions.
Other options would be to isolate crypto from traditional financial economies and regulate the industry in a manner similar to the financial services industry.
