The Ethereum co-founder thinks that CBDCs are good for macroeconomics, but there are also certain difficulties.
Central bank digital currencies, or CBDCs, will be fairly simple to convert into cryptos in the future, Ethereum co-founder Vitalik Buterin thinks.
Talking at the Singapore Fintech Festival 2020 on Dec. 9, Buterin stated that he expects a lot of methods to exchange CBDCs to cryptos like Bitcoin (BTC) as well as other digital coins:
“There’s a question of how these central bank [digital] currencies are going to interact with both crypto and digital currencies more generally. There’s going to be more digital assets of many different kinds coming over the next few decades.
I expect that there will be a lot of opportunities to fairly exchange between different kinds of assets and move from one ecosystem to another.”
Buterin also showed optimism over global CBDC development, seeing that central bank digital currency has a lot of potential advantages, such as simplifying macroeconomics. However, the idea of a CBDC begins with a lot of associated issues such as privacy issues, Buterin saw.
At the event, Buterin also summarily talked about blockchain-based tracking of COVID-19 vaccine distribution, seeing that this is a good model of supply chain use cases.
The Ethereum co-founder was sure that blockchain will make even more related use cases in the future, especially powered with growing scalability.
“In the case of vaccines for COVID-19 specifically, the main challenge is that it takes time to build these things, and people want to get these vaccines fairly quickly so the world can get back to normal,” he replied.
The idea of CBDC has developed as one of the biggest trends in monetary policy across the past two years, with nations like China and Sweden leading digital fiat currencies. In mid-November, Deutsche Bank, the largest banking institution in Germany, predicted that CBDCs will succeed cash in the long term.
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