The Bank for International Settlements (BIS) said in a report sent to the finance ministers of G20 economies that the inherent structural defects of cryptocurrencies make them unsuitable as monetary instruments.
The report pointed to problems with cryptocurrencies such as instability, inefficiency and accountability, which outweighed potential innovative benefits such as automated payments.
The report also said that despite the participation of millions of retail and institutional investors in the growing industry, cryptocurrencies have so far failed to harness innovation for the benefit of society.