The former US Fed chairman says there’s no need for central banks to issue digital currency.

The former US Federal Reserve Chairman Alan Greenspan said that there is no need for the central banks to issue digital currency. While speaking at Chinese finance magazine Caijing's annual economic outlook conference, the former Fed chairman pointed out that national currencies are backed up by sovereign credit, something no other organization can offer.

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Central banks all around the world are using a vast amount of resources to study central bank-backed digital currencies. Some countries are on the verge of issuing state-backed digital currencies. But the former Fed chairman thinks differently. According to a CNBC report, Greenspan said that there is no point for central banks to issue digital currencies.

 

Former Fed Chairman hits out on Facebook’s Libra.

While speaking at Caijing’s annual conference, Greenspan pointed out that the fundamental sovereign credit of the United States is far in excess of anything Facebook can imagine. The social media giant had earlier announced to launch its cryptocurrency Libra, and since then, it has been under constant scrutiny from the regulators all over the world. However, Facebook has promised that they would not go ahead with the project unless they meet all regulatory standards.

 

China to soon issue its CBDC

China is expected to issue its central bank-backed digital currency soon. The People’s Bank of China revealed that they had been studying and working on CBDC for the last five years. Earlier, Philadelphia Federal Reserve President Patrick Harker made opposite remarks on CBDCs than the former Fed chairman. He said that it is inevitable that the central banks, including the Fed, will issue digital currency.

Turkey, Russia, and Canada are also on the list of countries that are contemplating with the idea of issuing central bank-backed digital currency.

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Malaki Braydon
Malaki Braydon
Braydon has been into the crypto and blockchain space from the past 7 years. Based in New York City, Braydon has completed his masters from Kingsborough Community College.

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