Do Digital Currencies Issued by a Government Pose a Threat?
Andréa Maechler, who is a Governing Board Member at Swiss National Bank, said that government-issued cryptocurrencies may increase the risk of mass withdrawals from a bank caused by doubts about the bank’s solvency.
In addition, according to Maechler, decentralized cryptocurrencies cannot compete with traditional currency requirements. The central banker also added that Distributed Ledger Technology (Blockchain is a type of it) could potentially increase when it comes to international money transfers, as well as reduce costs. Nevertheless, she noted that Distributed Ledger Technology does not meet the requirements of Real-Time-Gross-Settlement payment systems in terms of data security and reliability.
No means all support the views expressed by Andréa Maechler. The Reserve Bank of India (RBI) has recently announced that it considers issuing a digital currency.
And what do you think about digital currencies issued by a government? Please share your opinion in comments!