Private cryptocurrencies like Bitcoin will similarly disappear “when money fails miserably”he said Ravi Menondirector of the Central Bank of Singapore and member of the World Economic Forum (WEF).
Speaking about the future of the monetary system this Tuesday morning (28), Menon said that people are buying cryptocurrencies “just to make a quick buck through speculation”.
He added that unlike cryptocurrency developers, governments are creating a new “truly functional” financial system: central bank digital currencies (CBDCs).
“Private digital assets have failed miserably as money. They are unable to maintain their value in the long term and become equal. Therefore, no one keeps their savings in these assets for a long time. People buy and sell private digital assets just to make money through speculation.” Menon said.
However, contrary to what Menon says, blockchain data shows that more than 60% of Bitcoin holders hold their holdings for more than five years, which translates into investors believing in the long-term value of the digital currency.
Menon also stated that the future monetary system will consist of only three components: CBDCs, tokenized bank debt It is stable coins “well organised”.
“Private cryptocurrencies, which are native digital tokens, do not pass this test, so I think they will eventually disappear,” rounded.
CBDC is better than Bitcoin, IMF member suggests
Menon highlighted the regulatory move towards the development of digital currencies such as the Drex and the Digital Dollar, which he said “fully backed by government bonds or cash”.
In the same panel, Reserve Bank of India (RBI) Vice President M. Rajeshwar Rao shared insights on the progress of CBDCs.
He noted that the central bank’s digital currency can achieve greater success if they address users’ unmet needs and relying on existing accessible technologies and infrastructure.
Rao also addressed critical data privacy and cybersecurity issues, highlighting the need to ensure CBDCs are as reliable as physical cash. He mentioned the RBI’s efforts to facilitate offline transactions by expanding the scope and accessibility of CBDCs.
“Data privacy is a concern. Cybersecurity and resilience are also very critical issues that we will need to ensure that CBDCs are as reliable as physical currencies.”he said.
The RBI is among the pioneers in implementing a CBDC pilot, alongside countries such as Brazil and China, which already involves around 2.75 million participants. Rao discussed the possibility of further expanding the applications of CBDCs, including interbank money market transactions.
He emphasized the need for more reflection on the implementation of CBDCs on a multilateral basis in the future.
Source: Live Coins
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
