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Cryptocurrency prices are fanned by “misconceptions about the monetary economy” and conspiracy theories, while CBDCs are immune to volatility and can be trusted unconditionally. This was stated by the head of the Central Bank of Finland Olli Rehn, writes CoinDesk.
“Someone joked that the national digital currency is the solution to the problem. I’m not a fan of them, but I’m convinced that detractors are unfairly downplaying the potential merits of CBDC.“, he said.
Ren drew attention to the potential risks of the transition to a more digital economy in the context of the growth of crypto markets over the past five years.
The governor expressed the opinion that the high volatility of such assets is only partly due to the impact of monetary policy.
“Central banks need to prepare for the moment when it will be necessary to ensure convertibility into CBDCs. We must remember that safe and secure access to central bank money is the foundation of price and financial stability.” He explained.
Ren repeated the position Ecb that the digital euro will guarantee the preservation of the department as an anchor of the EU monetary system.
Earlier, the regulator pointed to the dependence of the success of the CBDC on the degree of its adoption.
Recall, the initiative to issue a digital euro arose in November 2019. In October 2020, the ECB published a comprehensive report on the subject.
In May 2022, a member of the regulator’s board, Fabio Panetta, allowed the release of cBDC until 2026.
Later, the official said that the ECB will limit the issue of the digital euro at the level of 1.5 trillion.
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