Cornell University professor Eswar Prasad embraces digital currency and suggests Central Bank to issue their own digital currencies. The statement reads “issuing digital currency will enable central banks to stabilize the economy and still remain in money game.
Cryptocurrency Adoption can assist central banks
Prasad is a former chief of IMF China division who often appears on the crypto bulletin. He said the use of digital currency is a source of creating money, counting that;
“If you look at certain economies like Sweden where the use of cash is very fast disappearing, central banks may have a very little role to play both in terms of wholesale as well as retail payment systems — so this would keep central banks in the business of creating money.”
Major countries are already focusing on issuing their own digital currency within the country. Various countries are heading up with an array of missions such as to fight against illegal activity, to promote cashless payment, encourage privacy concern and more. Mr.Prasad emphasized prominent banks like The Federal Reserve, Bank of Japan and European Central Banks were in a discussion to “step-back approach”.
He highlighted that if the central bank would issue digital currency, it would analyze illegal activity lined with cash and imposing nominal rates on such acts. He also pointed out the “decentralized nature of digital currency” which will disappear the involvement of commercial banks for retail payments, hacking and avoiding the risk in implementation.
Central Bank Digital Currency (CBDC) concept is likely to solve existing issues of privacy concerns. On top of all, it will also set itself as the new payment system.
When it comes to countries launching their own cryptocurrency, Venezuela, Senegal, Tunisia, and The Marshall Islands pops up as the major nations. While Iran is still in process to launch its own state-backed cryptocurrency, trading platforms like BitMex, Bittrex, and Binance are harsh on crypto trading for Iranians.
Do you think that cryptocurrency will have a wider adoption to contribute to the overall benefit of society if Central banks are adopting it? Let’s discuss