Cryptos are issued independently of commercial or central banks, but there are increasing links between cryptos and the mainstream financial system. A serious drawback is the fact that the value of most cryptos is very volatile. This makes them unsuitable as a means of payment, store of value and unit of account.
Both of these measures produce a squeeze in the domestic money supply and therefore in credit demand, which ultimately reduces the demand for goods and services in the real economy. In the long run, sustainability is restored through the imposed reduction of relative prices and wages.