Cryptocurrencies Will Never Be Able To Substitute the Currency Issued by a Central Bank, Says Romanian Bank Official

A Romanian Central Bank official has said that it not necessarily true that digital currencies issued by central banks will replace fiat currencies, as they believe digital currencies are not necessarily currencies but more like financial assets. The news was reported by local media outlet Business Review.

The official, Daniel Daianu, who is a member of the Romanian National Bank (BNR)’s Administration Council, was speaking at a conference where he made these remarks,

In my opinion, these are financial assets, not cryptocurrencies, and they won’t be able to fulfil the basic roles of currency… Cryptocurrencies will never be able to substitute the currency issued by a central bank. What can happen is for central banks to have a digital currency, but that will also be issued by the bank, and commercial banks will receive digital currency that can multiply. I do agree, however, that new technologies lead to disintermediation and this feature of decentralization shows us the merits of networks.

The debate about whether or not cryptocurrencies fit the mold of traditional currencies has been raging for some time, with the likes of Nouriel Roubini being one of the most vocal opponents. The European Central Bank chief has said the same.

Central Banks Are Examining Cryptocurrencies

Recently, the International Monetary Fund (IMF) released a report that showed the intensity with which central banks are looking into blockchain technology, research, and development, which includes banks issuing their own central bank digital currency.