The proof-of-work (PoW) algorithm used by bitcoin and some other cryptocurrencies is not viable in the long-term and needs to be replaced, argues a new study from the Bank of International Settlements (BIS).

BIS, considered to be the central bank of central banks, published a research report on Monday, saying that PoW – which uses a network of powerful computers to secure the network – is “extremely expensive” and the only solution is to “depart” from using the algorithm.

Author of the report, Raphael Auer, a principal economist for the monetary and economic department at the BIS says that there are two fundamental economic limitations of the algorithm.

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