Central Bank Digital Currencies will dominate – Bitcoin is a self-fulfilling bubble

Nouriel Roubini continues his hate and denial of all things crypto related. In an interview on Bloomberg TV, the economist and CEO of Roubini Macro Associates once again let his extremely negative views on Bitcoin and Cryptocurrencies be known, and said that CBDCs would dominate. 

He discarded the notion that Bitcoin and Crypto were currencies, saying that this was a “misnomer”. He explained that they weren’t units of account or scalable, and that Bitcoin could only do five transactions per second, whereas with the Visa network 25,000 transactions can be done per second. 

Roubini said that that the huge number of tokens involved was “like going back to barter”.  

He posited whether Cryptocurrencies were assets and said that if they were then they would need to provide income like stocks, bonds, loans or real estate do. Unlike Bitcoin, which doesn’t have any income, has no utility, and is just “a self-fulfilling bubble”. 

In his view, Central Bank Digital Currencies (CBDC) would dominate payment services. However, he also said that CBDCs would just be a “digital manifestation of something that is already partly digital”, and that every central bank would eventually have them. 

He said that once CBDCs were up and running then “everybody is going to have an account with the central bank” and that transactions would be able to be carried out “securely, cheaply and with instant settlement”. 

Roubini remarked that the Chinese would be the first to roll out their CBDC, the European Central Bank would have its digital euro, and that the Fed would have to move because the Chinese Renminbi could become the global reserve currency. 

At the end of the interview, Roubini was asked what he thought the biggest risk was for 2021. He replied that the return of inflation could have implications for bonds and equities. He also highlighted the increasing conflict between the US and China and how certain events might lead to a military escalation.

“the cold war is becoming colder and there is even a risk of a hot war rising over time”

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Post fetched from this article