Roubini: CBDCs Won’t Run On The Blockchain

Roubini: CBDCs Won’t Run On The Blockchain

One of the most fierce cryptocurrency bears, Nouriel Roubini, once again lashed out on blockchain technologies.

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One of the most fierce cryptocurrency bears, Nouriel Roubini, once again lashed out on blockchain technologies. The American economist stated that if central bank digital currencies (CBDCs) are to gain traction, they surely won’t be released on the top of the blockchain.

Also known as “Dr.Doom”, Roubini participated in a joint panel discussion alongside Ethereum mastermind Vitalik Buterin. Roubini gained notoriety for his predictions regarding the 2008 housing bubble collapse. He made his CBDC remarks during yesterday’s Deconomy conference, held in Seoul, South Korea.

The joint panel curiously dubbed “Fundamental Value of Cryptocurrency and its Sustainability” had Roubini bashing the hype surrounding the eventual launch of CBDCs. He explicitly said that if CBDCs are to come to life, they won’t leverage distributed ledger technology of any kind.

“As soon as there is news about [CBDC issuance] the people in crypto get excited and say, see it’s becoming mainstream […] but if you look carefully about what they want to do, if and when they’re going to do it, it’s not going to be blockchain, it’s not going to be crypto […] it’s going to be on a single ledger, secured.”

Nevertheless, he dug deeper into the possible benefits of global CBDC adoption. Roubini emphasized that the current banking system serves as an essential intermediary mainly because only banks can access central banks’ balance sheets. However, when and if CBDCs take on the stage, the rules of the game would be greatly redefined. CBDCs would virtually eliminate present day issues related to transaction fees and time efficiency.

Roubini believes that if adopted, CBDCs “will displace everything else […] not only cryptocurrencies […] but also bank deposits […] and digital payment systems such as PayPal.”

Apart from that, the American entrepreneur took time to criticize both cryptocurrencies and blockchain technologies. He firmly emphasized that governments are in no way interested in letting a decentralized financial system flourish. Moreover, we outright deemed crypto anonymity a myth.

In related news, the World Economic Forum reported that at least 40 central banks across the globe are either already running CBDCs trials or researching the matter.