2017.09.1804:01:00UTC+00​Central Banks Can't Snub Cryptocurrency Boom: BIS

According to the Bank for International Settlements, the world's biggest central bank can't settle back and dismiss the growth in cryptocurrencies as it could be a source of risk to the stability of the financial system.

It said that global central banks will need to clarify whether they will issue a digital currency and what qualities it should have, but said that the decision is most significant in nations such as Sweden where the use of case is deteriorating.

While central banks are already using digital money, but this is traded through a centralized system using accounts at the central bank.

BIS said that the most distinctive feature of a central bank-issued cryptocurrency would that it could be traded between the payer and the payee without the need for the central bank intermediary.

In its Quarterly Review, BIS said that institutions need to take into consideration not only privacy issues, but also take into account economic, financial and monetary policy consequences.

The review comes at the end of a rocky week for digital currencies. JPMorgan CEO Jamie Dimon called bitcoin trade a “fraud”, while China is pushing for a wider crackdown on local trading of domestic cryptocurrencies.