From the response in the letter section by Hyun Song Shin, Head of Research at the Bank for International Settlements, one might think that cryptocurrencies have some economic value (“The true promise of cryptocurrencies is beyond the realm of exchanges. Please take a look”, December 20).
We have to be careful not to brainwash people into thinking crypto has value. As we all know, cryptocurrencies (including Bitcoin) have zero intrinsic value. The value (if any) could come from code-behind, the so-called blockchain.
It is unacceptable to trick people into believing that cryptocurrencies are a store of value like gold. At least with gold you can make attractive jewelry.
What I can agree with is that blockchains used by cryptocurrency issuers can be used in IT for other industries such as notaries (to record asset transactions) and digital photography and music (to support copyright). It means that it can also be used to create tools.
But don’t mix crypto and blockchain. Blockchain can be viewed as software that records transactions. Cryptocurrencies are a scam to attract suckers and should be made illegal and banned from any financial system.
Some collateral-attached cryptos, “stablecoins,” must adhere to the same rules as securities, and therefore must follow the same regulatory and reporting framework, subject to regular external audits. .
Blockchain, on the other hand, can live on its own and support industries such as digital creations and notaries.
Olivier Morel
Frankfurt, Germany
