Central Bank of Digital Currency: One of the Worst Ideas?

The USA Congressional Subcommittee on Monetary Policy and Trade discussed the main issues and questions around the cryptocurrencies and reviews the potential of cryptocurrency development at a local and international level.

As well, during the hearing, the subcommittee should have decided if the banks should accept cryptocurrency as an actual currency, or rather they better refrain from it. As well, there was a question if the banks should introduce the central digital currency. And this question raised many concerns and troubles.

Regarding this point, the banks should either refrain from providing the payment device to the general public, or to provide some centralized solution, some kind of a digital currency, that should be, most likely, a kind of crypto.

However, some specialists, like Alex Pollock, senior fellow at the R Street Institute, stated, that this idea, the idea of a digital currency, is, probably, the worst idea ever. The centralized digital currencies will only increase the power of banks, instead of providing more flexibility and transparency.

When he is stating like this, he means cryptocurrency, not digitalized fiat money. In his opinion, fiat money, even if digitalized, is still fiat money. But cryptocurrency is still a currency to only some extent.

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