While some political and corporate leaders have been eager to invest in and adopt cryptocurrencies, others are entirely hostile. Turkish President Tayyip Erdogan recently declared outright war on the Bitcoin network. President Erdoğan: "We Are At War" President Erdoğan expressed his opposition to Bitcoin in a meeting with Turkish students this Saturday. The event comes after one of them asked if the country's central bank would adopt cryptocurrencies. Erdogan responded with total rejection: "We have absolutely no intention of embracing cryptocurrencies. On the…
The United States Federal Reserve plans to buy unlimited bond and also print dollar but do not appear to be going well. The country continues to experience a rising unemployment rate. Nonetheless, it appears that the cryptocurrency space has a solution to this challenge.
Mark Yusko of Morgan Creek Capital spoke on a recent podcast, suggesting that a central bank digital currency (CBDC) may help with the plan of printing dollar bills. Yusko said CBDCs may help with faster distribution in comparison with fiat currency.
According to him, 8 percent of fiat exist in paper or coin form while 92 percent is already in electronic form. Hence, electronic form of money will change to digital form and it is a positive thing.
However, people have been debating the difference between the electronic dollar and the digital dollar. In recent times, the former Chair of Commodity Futures Trading Commission [CFTC], Chris Giancarlo spoke his mind regarding electronic money and digital money.
According to Giancarlo, electronic money is on bank ledgers; hence, if anything goes wrong with the bank or the other intermediary, even if insurance is available, “it’s not the same thing as getting the real money.” Hence, a CBDC running on the blockchain may be a dependable option.
Nevertheless, despite that there will be digital money, banks will remain in charge. Banks will have information concerning all money transactions and this is totally against the whole concept of cryptocurrency’s decentralization.
Yusko noted that the United States should not fall behind and should release a digital dollar as soon as possible, because the country to first release a CBCD will enjoy maximum adoption. According to him, the U.S. should have used Facebook’s Libra to make this happen but lost the opportunity.
Featured image courtesy of Shutterstock. Source: Cryptopress.