The Bank for International Settlements sent a Report to the finance ministers of twenty major economies around the world.

BIS (a grouping of major central banks around the world) cited that issues such as inefficiency, accountability and instability outweighed potential benefits of innovation, like automated payments.

The report was prepared for the G20 meeting of finance ministers and governors of central banks that will take place this weekend in Gandhinagar in India.

It added that “Crypto is largely self-referential, and it does not finance actual economic activity.” Its inherent structural flaws mean that it is not suitable to play a major role in the monetary systems.

The report follows a turbulent crypto year. The report cites losses from the collapses FTX, Terra, and hacks, as well as the risks of rug pulling and hacks. It also mentions scaling problems to reach the size of a full-on payments system.

The skepticism of central bankers towards crypto is not new. They are concerned that new payment systems may disrupt or replace the fiat currency they issue.

The G20 members appear to be cautious in encouraging stablecoins – cryptocurrencies linked to fiat currency values – because the effects on centralized monetary policies can be more pronounced in developing markets.