Central bank digital currencies burst into the limelight earlier this year when news started making the rounds that China was on the verge of launching its CBDC. With that already making the rounds, many nations began looking into the creation of their respective CBDCs.
While most people are moving around with the mindset that the CBDCs will rival Bitcoin and other digital assets, a Russian analyst has said that CBDCs, especially the digital rubble, would not possess all the qualities Bitcoin has. In the interview, the academician said that Bitcoin and other assets would continue to lead against all digital currencies.
Analyst says digital currencies will always lose against digital assets
In the interview, Vasily Solodkov said the Russian Central bank wants the digital rubble to act as a competitor to Bitcoin and all other assets, but the digital currencies will always lose. Furthermore, he pointed to reasons such as anonymity, cross-border properties, and a finite number of the coin that will be produced.
Also, he mentioned that several payment facilitators would be cut out of the equation. If the bank is issuing the digital currencies, the payment facilitators would not have any function. “Looking at Bitcoin, one can notice that it can be used to make payments even in a restricted area,” he said.
Also, he pointed out that you can get paid in Bitcoin, and you decided to sell it for cash and get your money, something that cannot be done with digital currencies. The points listed out by Solodkov does not apply to only Russia but to numerous countries that are working on building their several digital currencies.
Alfa-Bank chairman wants crypto regulation to tighten across the country
Solodkov also mentioned that since major countries worldwide are trying to develop a CBDC that has the properties that Bitcoin has, they should be aware that the digital asset was developed to eliminate the financial houses.
In its white paper, Bitcoin was said to be a peer to peer payments system that would rule out the need for a bank and provide means of payments for the unbanked. In other news, one of the biggest financial houses across the country, Alfa-Bank, has told the government that they need to regulate crypto and its activities across the country.
In another interview, the chairman of the bank, Petr Aven, told RBC that he is not a believer in crypto-assets and he wants the government to tighten the rule on trading crypto further and holding it. Furthermore, he said he has learned at the university that no country across the world would allow a currency parallel to its own to emerge inside the country.
To further bolster that, the Russian parliament has announced a new crypto bill has just been passed, even though it’s still in its first reading. According to news outlets, the lower house has already accepted the bill, and it is presently on its way to the second reading. If it is eventually passed, it will be the second crypto regulation passed in the country.
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