Finance journalist Edward Chancellor states that the launch of central bank digital currencies could be disastrous for Bitcoin. British journalist and financial historian Edward Chancellor explained that the first central bank digital currencies could increase inflation , leading to the extinction of Bitcoin . He agreed that CBDCs were "cool" but absolutely not stable.
🔥CBDCs could mean the end for Bitcoin
Today, many central banks of numerous leading economies such as China, Japan, and the USA are exploring the option of launching their own CBDCs. In a recent interview for Reuters, Edward Chancellor stated that central bank digital currencies are highly risky projects. He said that CBDCs can even kill Bitcoin. Chancellor explained that it is much easier to distribute and "mine" digital currencies rather than cash, which will result in extremely high inflation. He then added that to fix the problem, governments and central banks must fix the emission of their digital currencies. Of course, the figure is from 21 million Bitcoinswill be much higher. The historian analyzed that changes in the form of money were normal and happened many times in the past. As an example, he pointed to paper money that once replaced metal coins. Chancellor predicted that digital currencies will invade the world in the process of the financial revolution. However, he decided that Bitcoin would not be one of them. As a result, the finance expert said that central bank digital currencies are "cool" as a project but cannot be considered stable.
🔥Deutsche Bank opinion on CBDCs
The multinational investment banking giant - #Deutschebank - shared similar thoughts recently. Christian Nolting, CIO of the #German institution, predicted that CBDCs could undermine Bitcoin's role as a payment instrument. He also suggested that the leading cryptocurrency could serve as a store of value. According to Nolting, the crypto industry is "here to stay". On the other hand, he warned that instead of relying on the decentralized nature of BTC, "governments and the more digitally conscious population may ultimately choose to go with #CBDCs." In addition, some potentially damaging legal frameworks developed by world regulators may reduce the chances of digital assets to serve as an international payment instrument.