Nouriel Roubini, an award-winning economist and renowned Bitcoin skeptic (BTC), believes that central bank digital currencies, or CBDCs, are the future of money.
Global central bank currencies such as the digital yuan could replace major financial services and cryptocurrencies in the near future, Rubini said. “They want to get rid of digital payment systems or the private sector and start with cryptocurrencies that are not really currencies,” the economist told Yahoo Finance on November 7.
Roubini predicted that the CBD-backed “revolution” would happen earlier, in three years:
“So you don’t just need to code, you don’t even need Venmo. You don’t even need a bank account. You don’t even need a check. The big revolution we’ll see in the next three years will be the digital revolution of the central bank. currency “.
In addition, the world renowned economist is convinced that the cryptocurrency itself is a “wrong name”, because the currency must provide the unit of account. “Nothing is valued in Bitcoin or any other cryptocurrency,” Roubini said, adding that the cryptocurrency does not provide a “single SIM card” or “scalable payment method”.
However, Roubini acknowledged that Bitcoin can act as a store of value, and this is an important function of money, along with the unit of account and medium of exchange:
“ Maybe this is a storage of partial value because unlike the thousands of other bitcoins that I call it, it is not easy to destroy because it is at least an algorithm that determines how many bitcoins will increase over time, because most of these other things are literally spontaneous. They are being destroyed faster than the Federal Reserve does. ”
Roubini also criticized decentralized finance, which is one of the most important trends in the cryptocurrency market in 2020. “DeFi has been evolving from the start,” the economist argued in late September 2020, adding that the industry “is completely shaky because the blockchain isn’t working. have always been the most technologically advanced ”“ Exaggerated in the history of mankind ”.