Economists at the Bank for International Settlements (BIS) explore the risks inherent in the cryptographic ecosystem and come up with a seemingly novel solution. In a statement released on January 12th, these people proposed: "Development and design is an alternative." They have in mind the central bank digital currency (CBDC). "

The authors of the announcement, led by Matteo Matteo Aquilina, a high-end economist at the Bank for International Settlements, show that they have learned lessons from the mysterious winter of 2022. They say the recent failure of the password asset market highlights the need to deal with password losses before various sales markets become more and more "systematic".

The authors say that both centralized and decentralized finance in the cryptographic world have many system vulnerabilities similar to those of traditional finance (TradFi). However, the risk caused by high leverage, liquidity and maturity mismatch and serious information asymmetry is higher at the encryption level.

The author emphasizes that although there are some difficulties, encryption is unlikely to fade on its own. He classifies implicit risk mitigation as a special thematic activity that forbids encryption, protects encryption with "China's real economy", and controls encryption "in a TradFi-like form". They provide an independent bylaw that divides national and international password control measures under this framework.

They stressed that each choice has its corresponding advantages and disadvantages. For example, restrictions "may conflict with the principles of social development", among other things. However, these three methods can be carried out simultaneously:

With their social policy mandates fully taken into account, central banks are likely to expect a lot of action. Based on the steady indigenous innovation that motivates TradFi, they can contribute to a more efficient monetary system.

Improving payment speed and cost efficiency is likely to be a key component of this strategy:

"some of the breakthroughs in the encryption industry can be used to change the way TradFi provides services."

The author claims that one of the best ways to achieve this goal is by CBDC, which provides many benefits:

"they can help reduce payment costs, increase financial diversity, improve overall integrity, and promote consumer controls on data and personal privacy."

International and supranational institutions provide a service platform for many people to resist encrypted money. Fabio Panetta, a member of the executive committee of the European Central Bank (ECB), recently made a similar argument that the rapid development of CBDC must be based on giving up encrypted currency. Not long before that, the same blog of the ECB published an article declaring that encrypted money was on the "innocuous road". The International Monetary Fund has also been criticized for its anti-encryption views.