In this video, Guy from Coin Bureau dives deep into a new BIS report that unintentionally highlights crypto’s massive growth and how it’s threatening the traditional financial system. While central banks push CBDCs, crypto is quietly building a parallel, borderless financial infrastructure.
Key Takeaways:
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BIS: Central Banks' Final Boss
The Bank for International Settlements (BIS) is the central banks’ central bank and a leading force behind the global CBDC agenda. It views crypto as a threat to state financial control. -
CBDC Push Intensifies
Since 2019, BIS has become a strong promoter of CBDCs. Through its Innovation Hub, it supports global pilot projects with the goal of reinforcing centralized monetary power. -
Crypto vs Project Nexus
BIS's Project Nexus aims to connect national payment systems but ignores crypto, even though crypto already solves many of the same problems more efficiently. -
BIS Research Accidentally Praises Crypto
A BIS report shows cross-border crypto flows reached $2.6 trillion in 2021, or 12 percent of global goods trade, proving crypto is now a global financial force. -
Stablecoins Lead the Charge
USDT and USDC made up nearly half of those flows. Countries like Turkey and Russia are heavy users due to inflation and sanctions, respectively. -
Crypto Solves Real-World Problems
Stablecoin flows are driven by practical uses like remittances. Crypto bypasses expensive and slow fiat systems, offering faster and cheaper alternatives. -
Crypto ‘Defies Gravity’
Using a gravity model, the BIS found that crypto flows aren’t limited by borders, distance, or language like fiat is. Crypto moves more freely across the globe. -
Capital Controls Can't Stop Crypto
BIS found that users can easily bypass government capital controls using crypto. What regulators call "circumvention" is seen by users as financial freedom. -
Governments Pushing Back
In response, countries like the UK are enacting strict crypto surveillance laws, requiring firms to report all user activity to authorities. -
Growing Political Resistance to CBDCs
Despite the CBDC push, public and political resistance is rising. In the US, there’s growing support for crypto at the highest levels of government.
Outro:
Guy points out the irony that while the BIS frames crypto as a threat, its own data shows crypto is thriving by solving global financial problems. As central banks double down, crypto users must stay vigilant. The battle between freedom and control is just heating up.
