Vitalik Buterin believes that the world needs a decentralized currency
The CBDC theme is back. As governments increasingly think about issuing their own digital currencies, one can wonder whether independent cryptocurrencies in general can compete with fiat currencies in their refreshed version. The co-founder of Ethereum, Vitalik Buterin, expressed his opinion on this issue on Block TV 4. Let’s add that he remains optimistic.
Buterin: digitisation is certain
Buterin stated that digitisation is inevitable and that decentralised currencies would, however, be much more advantageous than state-controlled central bank digital currencies (CBDC).
“The main challenge for a central bank, or even a corporate currency, is to concentrate power, concentrate or collect data, [the point is] to become dependent on potentially central intermediaries who can exercise very little control over who is capable of participating in these systems”.
– he said.
“We’ve seen a lot of situations where even things that are completely legal simply become limited because whoever manages centralised access points simply wants to exclude a certain category of users and I think these are the reasons why people will still be interested in a fully decentralised digital currency”.
Governments and their CBDC
Today more and more countries and companies are working on their digital currencies. The Digital Dollar project wants to issue a digitalized dollar. China is preparing to present the digital yuan to the world. The work is ongoing since 2015. Recently it was reported that the central bank of the superpower plans to carry out the first CBDC test in the real world. There is reportedly a good chance that the digital juna will see the light of day in 2020.
Theoretical work is also carried out by France, Ukraine and the European Central Bank. The position of Russia or Iran is still unclear. The Petro project, Venezuela’s digital currency, which was created in 2018, will rather end in disaster.
It is worth noting that central banks around the world started their activities after Libra’s plans to issue Libra were announced by Facebook itself. The social media company also plans to issue its currency this year.