In a joint statement Benoît Cœuré, Member of the Executive Board of the ECB and Chair of the Bank for International Settlements (BIS) Committee on Payments and Market Infrastructures (CPMI), co-authored by Jacqueline Loh, chair of the BIS Markets Committee said Bitcoin is “not the answer to the cashless economy.”
“Such cryptocurrencies are poor imitations of money. Almost nobody prices goods in bitcoin, few use them for payments, and, as a store of value, they are no better than gambling in a casino. Policymakers are rightly worried about consumer and investor abuses, as well as illicit use,” they appealed.
Benoît Cœuré and Jacqueline Loh assumed that one day cash will become museum exhibits as new generation prefers to pay using apps rather banknotes and coins. So discussions about whether central banks should issue their own digital coinage become more often.
A new report on central bank digital currencies (CBDC), released by the two committees explains the need to extend the current system. Today only financial institutions have direct access to digital central bank money via accounts at their national central bank. A consumer-oriented CBDC for all would challenge the current model of banks taking customer deposits and using that money to fund the lending that helps drive the economy. The only moment both representatives didn’t mention is about the regulation of CBDC processes.
Earlier International Monetary Fund (IMF) Chief Christine Lagarde has positively responded to the potential role for crypto-assets to play in countries with weak currencies.