The famous American Economist and naysayer of Bitcoin, Nouriel Roubini is of the view that Central Bank Digital Currencies (CBDCs) are going to emerge rapidly in the coming few years. He said that central banks’ digital currencies have the potential to become the future of money while overtaking other currencies especially cryptocurrencies whom he does not consider currencies.
Recently, Nouriel Roubini appeared in an interview with Yahoo Finance on November 7 where he presented his view regarding the world’s largest digital currency by market cap Bitcoin (BTC) and shed a light on the potential of central bank digital currencies. He said that Bitcoin is not decentralized neither it is secure and scalable. He does not even consider Bitcoin a currency.
While presenting his outlook for the economy, Roubini talked about emerging central bank digital currencies. He believes that CBDCs are going to replace other currencies in the future. Digital payments systems will be “crowded out” by them, he said. According to him, a Central Bank Digital Currency is the next big revolution that we are going to see in the coming three years. As he predicted:
“And the big revolution we’re gonna see in the next three years is gonna be central bank digital currencies.”
He said that there is no need for you to have a bank account neither a digital currency. With central bank digital currencies, “you do not even need a check” as well, he assured. He did not only criticized cryptocurrencies but he also took on the decentralized finance (DeFi) industry as well which has been booming throughout this year.
Though he is not a supporter of Bitcoin and criticizes it, he still acknowledged that the top-ranked digital currency may act as a potential store of value. He said:
“It’s maybe a partial store of value, because, unlike thousands of other what I call shitcoins, it cannot be so easily debased because there is at least an algorithm that decides how much the supply of Bitcoin raises over time.”