In a study, the BIS (Bank for International Settlement) condemned Bitcoin for its high energy usage, redeeming public interest attributes, and role in money laundering.
In addition to rejecting traditional cryptocurrencies like Bitcoin, the research also targeted stablecoins, which are crypto-assets like Tether that promise to be backed by fiat money.
Tether, the crypto market's largest stablecoin, disclosed its reserves in May for the first time since 2014. After stating that Tethers were 100% backed by cash, it was discovered that fewer than 3% of Tether's reserves were stored in cash.
The BIS research comes only weeks after the bank adopted a firm position against institutions that wish to keep digital assets.
On June 10, the BIS issued a consultation document in which it stated that the ongoing rise of cryptocurrencies may increase the danger of financial instability.
As a result, the bank implemented a regulation requiring banks to set aside sufficient capital to offset any losses incurred as a result of holding Bitcoin.
The decision was viewed as conservative at the time, and it threatened to undermine hopes for Bitcoin's widespread adoption.