Bank of International Settlements is a financial institution owned by some popular and largest central banks worldwide. One of the studies of BIS has been seen trying to dismiss the theory of people who think that crypto ownership is associated with people’s distrust in fiat currencies that the government issues. On 1st July 2021, the BIS published the newspaper on United States socioeconomic drivers of crypto investments. In the paper, BIS argued that the distrust of people in fiat currencies is not related to investors and traders being attracted towards digital currencies like Bitcoin and Ethereum.
BIS published that “the demand for crypto coins isn’t motivated because of distrust in regular money or cash and there are generally no differences in security of money and online and offline banking. BIS stated that they disprove the supposition that cryptocurrencies are developed to be the alternative of regulated finance or fiat currencies.” The authorities across the world stressed that digital currencies are not required as alternatives to fiat currencies, and instead, these currencies are niche speculation objects.
The paper published by BIS also states the correlations between investment choices, income, and education of crypto owners. Techtimes.com suggested that crypto owners are more educated than normal investors. It has been found out that Ripple and Ether investors are highly educated, whereas investors who own Litecoin are least educated, whereas bitcoin owners are ranked as medium educated.
Each day new reports are generated. A new report also suggests that Bitcoin and other cryptocurrencies provide no threat to traditional currencies or financial tools, claiming that crypto demand isn’t because of distrust of people in cash or regular money. Earlier, when bitcoin’s price skyrocketed, many global institutions and authorities expressed their concerns about its potential and taking advantage of people’s distrust in traditional currencies or government.
In December 2020, Ruchir Sharma, Morgan Stanley Investment, disputed that the supremacy of fiat currencies like the U.S. dollar would end because of the inception of cryptocurrencies, leading to global distrust. Every investor needs to understand that bitcoin doesn’t affect any traditional finance tools, and therefore there is no harm to fiat currencies. People who want freedom often use digital currencies, and those who want banks to handle their funds using traditional currencies,