An economist said that the digital currency issued by central banks is the future, not the crypto-currency

The crypto-currencies, like Bitcoin, are today at the heart of all discussions. These digital currency provoke in effect the interest of many governments. If major countries such as the United States, have already adopted, some are still reluctant to use this technology. Central banks around the world are seeking ways to regulate this market, but until now, no decision has yet been taken.

Barry Eichengreen, an economist, gave his opinion on the subject. The latter believe that the virtual currency issued by central banks make the transactions more efficient. He explained that crypto-currencies are mostly used to develop illicit activities.

The place crypto-currencies in the economy

According to this economist, crypto-currencies such as Bitcoin and Ether, don’t really play a major role in the current economy. He finds that the digital currency by central banks is a role that is very different from the crypto-currencies.

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The first virtual currency backed by central banks will make the financial operations more effective, crypto-currencies are a way to launder money, he added. These comments join furthermore, the intention of governments to create crypto-currencies.

Different experts still criticize the crypto-currencies

The digital currencies have been criticized by a number of experts, regulators and representatives of central banks in recent weeks. Kennet Rogoff, an economist from Harvard, has predicted that the price of Bitcoin was going to collapse under the continued pressure of the governments. Last month, the chinese authority decided to prohibit the ICO that allow start-ups to raise funds through the launch of new crypto-currencies.

After the ban, the value of the Bitcoin has dropped considerably. The CEO of JPMorgan, called the digital currency fraud. Despite this, the Bitcoin has taken over the value and even reached a record level recently.

Source : CNBC