Home Opinions Central Bank Backed Digital Currencies Own Future: Economist Barry Eichengreen

Central Bank Backed Digital Currencies Own Future: Economist Barry Eichengreen

October 31, 2017 15:20
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Expressing discern on the wider acceptability of cryptocurrencies, Economist Barry Eichengreen has said that Central Bank-issued digital currencies hold future in the daily form of transactions against the cryptocurrency. In an interview with CNBC, he has shared his views and future of cryptocurrency.

Barry Eichengreen

In his view, cryptocurrencies like bitcoin and ether will not play a major role in the growth in digital currencies and only will serve as a vehicle for illicit activity. He said: “The first alternative central bank digital currencies will make transactions more efficient. The second one is a vehicle for money laundering, tax evasion and the like.”

He thinks that central bank backed digital currencies will able to find wide acceptability among people than the cryptos which is still a decentralised one and investors face risks in transacting through it.

Lately, many renowned economists and investors including Warren Buffet have expressed concern about the future prospect of cryptocurrencies. Harvard economist Kenneth Rogoff has made his predictions that the price of Bitcoin will collapse more rapidly once governments start to regulate its operations. Last month, following the ban on ICOs by China, the price of cryptocurrencies dropped off significantly.

In the chain of events, Bank Indonesia has refused to acknowledge Bitcoin Payment Processors as an authentic mode for payment instalment which led to the closure of bitcoin payment platforms in the country.

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