Cryptoassets increase risk in developing economies, study says

Cryptoassets, peddled as the future of finance, have not only failed to deliver on their promise but are themselves adding to financial risks in developing economies, according to a paper from the Bank for International Settlements.

“Cryptoassets hold out the illusory appeal of being a simple and quick solution for financial challenges” especially in emerging markets, but “have so far not reduced but rather amplified the financial risks in less developed economies,” the BIS report showed.