BIS Report: Capital Flow Management Measures Appear to Be Largely Ineffective in Cryptocurrency Transactions

Planet Daily News: The Bank for International Settlements (BIS) recently released a paper titled "Empirical Analysis of Cross-Border Bitcoin, Ethereum, and Stablecoin Flows," which deeply investigated the driving factors behind cryptocurrency flows across 184 countries from 2017 to mid-2024. The research found that geographical distance and language barriers have a much smaller impact on cryptocurrency transactions compared to traditional financial flows. Global factors such as market volatility and widening credit spreads have become important determinants of native crypto assets. Stablecoins show a stronger correlation with remittance costs and transaction demands, especially in emerging markets and developing economies with high traditional financial channel costs. Moreover, capital flow management measures appear to be largely ineffective in suppressing these digital transactions, with evidence suggesting that transaction volumes of certain crypto assets may even increase due to such measures. The research results highlight the dual role of crypto assets as speculative investments and trading tools, emphasizing the need for further research to assess their impact on financial inclusion and economic stability.