Categories: Blockchain News

Why Should Central Banks Support Digital Currency Adoption?

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…


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

To get the daily price analysis, Follow us on TradingView


Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]

Recent Posts

ETH Supply in Smart Contracts Leads That on Exchanges With Huge Margin, Thanks to DeFi

On-chain data analytics provider Galssnode has come up with an interesting observation for ETH supply!…

1 day ago

DeFi Mania Continues to Catalyze DEX’s Volume

Decentralized exchanges [DEXs] has recorded phenomenal growth in 2020. And it is not the user…

2 days ago

CrossFi Solutions Can Overcome the DeFi Hype in Building a Sustainable Future for Decentralized Finance

Decentralized Finance (DeFi) is no-brainer the crypto ‘buzzword’ of 2020, this space has experienced tremendous…

2 days ago

Security Risks in DeFi (Decentralized Finance)

Decentralized finance has been the talk of the town for the last few months, seeing…

2 days ago

Bitcoin Trading Volume on Bakkt Peaks Again as September Expiration Approaches

Bakkt recently had witnessed a peak in the trading volume of physically-settled bitcoin futures on…

2 days ago

Bitcoin To 10x From These Levels Says Analyst, Predicts Other Giants to Follow MicroStrategy

Business Intelligence Firm MicroStrategy created a massive buzz by announcing BTC purchase worth $425 million.…

2 days ago