A new study by the Bank for International Settlements (BIS) has shed light on the true extent of bitcoin‘s impact on cross-border payments, revealing that its importance may be even greater than previously believed.
According to a report bybitcoin-mapping-system-2023-10-04/”>ReutersThe findings challenge conventional assumptions and underline bitcoin‘s growing relevance in the global financial landscape.
Conducted by the organization’s testing lab, the study sought to comprehensively examine bitcoin‘s role in cross-border transactions. While public data often provides a partial view of cryptocurrency activities, this study used a novel approach, including the development of a new “global bitcoin mapping system” that reportedly also incorporates non-public data from private companies.
The report did not provide details about the proprietary system. However, it is worth noting that he acknowledged that his data is likely imperfect given that it is still possible to use bitcoin anonymously and without identification.
The system tracked transactions, addresses, and wallet movements to paint a more complete picture of bitcoin cross-border payment activities, according to the report.
Additionally, the study revealed that bitcoin was increasingly being used for remittances, providing a lifeline for people in regions with limited access to traditional banking services. Its borderless nature and ease of use made it an attractive option for sending funds across international borders.
The findings of this study are expected to stimulate further discussions among regulators, financial institutions, and policymakers on the role of cryptocurrencies in cross-border transactions.
Founded in the 1930s, the BIS is owned by its member central banks and its main objective is to “encourage international monetary and financial cooperation.”
As such, the report demonstrates continued interest in bitcoin among global central banks, some of which want a stronger regulatory approach to the technology.
