American economist and notorious crypto critic Nouriel Roubini has argued that if and when central bank digital currencies are adopted, they won't be based on blockchain.
Roubini - otherwise known as "Dr. Doom" for his prediction of the 2008 housing bubble collapse - made his comments during a joint panel with Ethereum co-founder Vitalik Buterin at the Deconomy conference in Seoul, South Korea, on April 4, a Cointelegraph correspondent reports.
As previously reported, CBDCs are distinct from cryptocurrencies in that they are digital currencies issued by a central bank whose legal tender status depends on government regulation or law.
During the panel, entitled the "Fundamental Value of Cryptocurrency and its Sustainability," Roubini attempted to deflate enthusiasm about central banks' research into the issuance of CBDCs, arguing that they won't be issued on the blockchain or other distributed ledger technologies.
"As soon as there is news about the people in crypto get excited and say, see it's becoming mainstream but if you look carefully about what they want to do, if and when they're going to do it, it's not going to be blockchain, it's not going to be crypto it's going to be on a single ledger, secured."
Roubini analyzed the prospective impact of CBDC adoption, noting that only banks have access to the balance sheet of central banks in the current financial system, and private individuals and corporations thus have to go via the banking system as an essential intermediary.
Rehauling this system with a CBDC, he thus argued, could bring significant transaction cost- and time- efficiency gains, with the upshot that, if adopted, CBDCs "Will displace everything else not only cryptocurrencies but also bank deposits and digital payment systems such as PayPal."
Aside from his remarks on CBDCs, Roubini reiterated many of his now well-known criticisms of cryptocurrency innovation - i.e. that international governments will categorically quash any value transfer system that is truly anonymous, and that decentralization in crypto is a myth.
As Cointelegraph has reported, a new analysis from the World Economic Forum has stated that at least 40 central banks worldwide are conducting CBDC research projects and pilots with blockchain technology, which aim to address such issues as financial inclusion, payments efficiency and cybersecurity.
Crypto Critic Nouriel Roubini: Central Bank Digital Currencies Won't Be on Blockchain
gepubliceerd op Apr 4, 2019
by Cointele | gepubliceerd op Coinage
Coinage
Recent nieuws
Alles zien
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.