Central banks should issue their digital currencies to replace a crisis-prone banking system and block cryptocurrencies, according to Nouriel Roubini.
In an article for The Guardian, he observes that money is being used less and less and that it has almost disappeared in countries like Sweden and China. At the same time, digital payment systems – PayPal, Venmo and others in the west; Alipay and WeChat in China; M-Pesa in Kenya; Paytm in India: offers interesting alternatives to services once provided by traditional commercial banks.
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"Most of these innovations of FinTech are still connected to traditional banks and none of them are based on cryptocurrencies or blockchains, and if the central bank's digital coins (CBDCs) are ever issued, they will have nothing to do with these oversized blockchain technologies, "he says.
"Nonetheless, the wide-eyed crypto-fanatics have seized the CBDC's attention to politicians as evidence that central banks also need blockchain or crypto to enter the digital currency game, which makes no sense. If nothing else, CBDCs will probably replace all private digital payment systems, regardless of whether they are linked to traditional bank accounts or cryptocurrencies. "
If a CBDC were to be issued, it would immediately move cryptocurrencies, which are not scalable, cheap, secure, or actually decentralized, says Robin. "Enthusiasts will argue that cryptocurrencies will remain attractive to those wishing to remain anonymous, but, like private bank deposits today, CBDC transactions could also be made anonymous, with access to information on available nominees, when necessary, only to the authorities or the police authorities, as is already the case with private banks ".
Cryptocurrencies, he adds, are not actually anonymous, as individuals and organizations using cryptographic portfolios still leave a fingerprint. And the authorities that legitimately want to track criminals and terrorists will soon hit attempts to create cryptocurrencies with complete privacy.
"To the extent that CBDCs would eliminate unnecessary cryptocurrencies, they should be welcomed, and by transferring payments from private banks to central banks, a CBDC-based system would be an advantage for financial inclusion." Millions of unallocated people would have access to an efficient and almost free payment system through their mobile phones, "he says.