The CEO of liquidity provider Broctagon has issued a stark warning to banks edging towards launching a Central Bank Digital Currency (CBDC).
The comments come after the Central Bank of France announced that they were testing a digital Euro, as reported by Coin Rivet on Wednesday.
“It’s no surprise that France has also thrown its hat in the ring to be the first to create a CBDC.” Said Broctagon CEO, Don Guo.
“Since China’s announcement, global powers seem to be starting to recognise the inherent advantages of crypto. A country which can correctly implement a CBDC will benefit from a currency which is totally borderless, efficient and immutable.”
France's central bank seems to be testing a CBDC. Could this be a sign of things to come?https://t.co/iOHq1okfdu#CBDC
— Oliver Knight (@OKnightCrypto) April 1, 2020
However, he was quick to point out that banks need to be cautious to avoid overly centralising digital currencies.
“One thing banks need to be careful of is centralising these currencies out of existence.” He added. “The founding principal of crypto was decentralisation, so banks need to ensure they don’t lose sight of the benefits associated with decentralisation, otherwise they risk pouring valuable time and resources into simply creating another fiat currency.”
The topic of CBDCs has become increasingly popular over the past 12 months with the ECB and a number of central banks assessing the potential benefits in November.
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Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.