'Kripto paranın sosyal rolünü yerine getiremez'

Rağmen kripto para birimi sektörü expanding and advancing with each day, many authorities and mali organizations, particularly those supervising the emerging decentralized finance (Defi) industry, are still expressing concerns about the space.

One of these organizations is the Bank for International Settlements (BIS), which released a bülten on June 7 titled “Blockchain scalability and the fragmentation of crypto”, in which it presents its view that “crypto cannot fulfill the social role of money.”

In this report, the organization lists a number of problems it perceives in the crypto and blockchain industry, including high fees and network congestion that lead to fragmentation of the crypto landscape:

“Building on permissionless blockchains, crypto, and DeFi seek to create a radically different monetary system, but they suffer from inherent limitations. A system sustained by rewarding a set of decentralized but self-interested validators through fees means that network effects cannot unfold. Instead, the system is prone to fragmentation and costly to use.”

The crypto fragmentation issue

Furthermore, the report explains that:

“Parçalanma, kriptonun paranın sosyal rolünü yerine getiremeyeceği anlamına geliyor. Nihayetinde para, ekonomik değişimi kolaylaştıran bir koordinasyon aracıdır. Bunu ancak ağ etkileri varsa yapabilir: daha fazla kullanıcı bir tür parayı kullandıkça, diğerlerinin onu kullanması daha çekici hale gelir. Geleceğe baktığımızda, egemen para birimlerine güvene dayanan yeniliklerde daha fazla umut var.”

The report also touches upon the “limited scalability and a lack of interoperability,” which “not only prevent network effects from taking root, but a system of parallel blockchains also adds to governance and safety risks.”

As for different blockchains exhibiting strong price co-movements despite fragmentation, the organization interprets this as these networks sharing the same investor base and growth being “sustained by speculative buying of coins.”

This is not the first time BIS has criticized crypto. In December 2021, yüzgeç reported on BIS General Secretary Agustin Carstens discussing the “break of the manifestation of non-bank financial intermediation” and his belief that DeFi is “illusive”.