CBDCs aren’t stable enough and they could eventually kill Bitcoin according to financial journalist Edward Chancellor who predicted that launching central bank digital currencies could also turn for the worse for BTC as we can see more in our crypto news today.
Edward Chancellor who is a British journalist and financial historian said that the first central bank digital currencies could raise inflation which will eventually lead to the destruction of BTC and agreed that CBDCs aren’t stable but they are cool. Many central banks of leading economies like Japan, China, and the US as are researching an option of launching their own CBDCs. In a recent interview with Reuters, Edward Chancellor said that the central bank digital currencies are highly speculative and risky projects. He said that CBDCs could even kill BTC but he said that it is much easier to distribute and to print digital currencies rather than cash and will cause a high level of inflation.
He added that in order to solve the issue, the central banks and governments will have to fix the emission of the digital coins which a number will be higher than 21 million bitcoins:
“When banks get it right with CBDCs this will kill Bitcoin.”
The historian analyzed that the changes in form of money are quite normal and happened multiple times in the past as he pointed out that the paper money which once replaced metal coins. The chancellor predicted that in the process of financial revolution, the digital currencies could invade the world but said that BTC will not be among one of them. In conclusion, the journalist that the central bank digital currencies are quite cool as a project but can not qualify as stable. The multinational investment banking giant, Deutsche Bank shared the thoughts, and the CIO of the German institution Christian Nolting predicted that CBDCs could damage Bitcoin’s role as a payment instrument suggesting the main cryptocurrency could serve as a store of value.
As per Nolting, the crypto industry is here to stay but he did warn that the governments and more digitally aware populations could prefer to go with CBDCs instead of relying on the decentralized nature of BTC. Some potentially harming legislative frameworks developers by world regulators that could reduce digital assets’ chances of serving as an international payment instrument:
”A widespread introduction of CBDCs accompanied by higher regulation of cryptocurrencies could create a more challenging environment for crypto assets as some of their advantages compared to traditional financial assets would fade in the longer term.”
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]