Overview of the Bank for International Settlements on Three Policy Approaches to Address Crypto Risks: Regulation, Containment, or Total Prohibition

ChainCatcher message, the Bank for International Settlements (BIS) released a report stating that authorities can take three different approaches to address the risks of the cryptocurrency market: regulation, containment, or a call for a complete ban on the industry.

It is reported that the BIS outlined the pros and cons of each approach and noted that they can be used in combination. Among them, banning cryptocurrencies would be an "extreme choice" that would limit innovation. Another option is to isolate cryptocurrencies from traditional finance and regulate the industry in a manner similar to the financial services sector. Additionally, the report suggests that central banks develop their own digital currencies to "encourage robust innovation." (source link)