The Bank for International Settlements (BIS) is reportedly spending extensive efforts to dismiss the theory of crypto ownership having associations with distrust in traditional finance.
Specifically, the BIS reportedly introduced a paper focusing on the socioeconomic drivers of cryptocurrency investments in America on July 1st.
BIS – referring to insights generated by the U.S. Survey of Consumer Payment Choice – revealed that there is no connection present between distrust in fiat currencies, like the U.S. dollar, and investor’s initiatives to keep crypto coins such as Bitcoin (BTC) in their possession.
“Demand for cryptocurrencies is not driven by distrust in cash or the financial industry, given that there are no differences in the perceived security of cash and offline and online banking. We can thus preliminarily disprove the hypothesis that cryptocurrencies are sought as an alternative to fiat currencies or regulated finance.”
The authority reportedly highlighted that virtual coins are not used as a replacement for fiat or regulated finance, but rather a “niche digital speculation object”.
BIC reportedly claimed that viewing the matter from a policy point of view, the gist of the analysis is that investors’ objectives are the “same as those for other asset classes, so should be the regulation.”
The BIS paper additionally shone some light to significant correlations between crypto investment choices and the level of education and income, with a takeaway revealing that crypto holders are “generally more educated than the average”.
Investors dealing primarily in Ether (ETH) and XRP possess the most advanced level of education in the BIS’ analysis, while individuals holding Litecoin (LTC) are at the other end of the spectrum – lowest, and Bitcoin ones stay in the mid-section.
The report reportedly showed that crypto brings no major risk to traditional finance instruments, since crypto demand is not fueled by distrust in cash.