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Nouriel Roubini, an award-winning economist and notorious Bitcoin (BTC) skeptic, is confident that central bank digital currencies, or CBDCs, are the future of money.
According to Roubini, global CBDCs such as the digital yuan are likely to replace major financial services and cryptocurrencies in the near future. “They will shift digital payment systems, or into the private sector, away from cryptocurrencies that aren’t really currencies,” the economist said in a November 7 interview with Yahoo Finance.
Roubini predicted that a CBDC-fueled “revolution” will come as soon as three years from now:
“So not only do you don’t need cryptocurrencies, you don’t even need Venmo. You don’t even need a bank account. You don’t even need control. And the great revolution that we will see in the next three years will be central bank digital currencies. “
Furthermore, the world-renowned economist is confident that the cryptocurrency itself is a “misnomer”, because a currency must provide a unit of account. “Nothing is priced in Bitcoin or any other cryptocurrency,” Roubini argued, arguing that cryptography provides neither a “single numerator” or a “scalable means of payment.”
However, Roubini admitted that Bitcoin could serve as a store of value, which is a major function of money along with a unit of account and a medium of exchange:
“Maybe it’s a partial store of value, because unlike thousands of others what I call shitcoin, it can’t be degraded that easily because there is at least one algorithm that decides how much Bitcoin supply increases over time, because for the most of the other ones, literally, are made to order, and are degraded faster than the Fed is doing.
Roubini also criticized decentralized finance, a major trend in the cryptocurrency market in 2020. “DeFi has been vaporware since its inception,” argued the economist in late September 2020, adding that the industry is “totally faltering as blockchain has always been the most exaggerated technology in human history. “
