VC operator Consilium CEO Eddie Travia believes that state-owned cryptocurrencies are unlikely to be too popular due to their controllable nature.
According to the Atlantic Council, at the moment, 11 countries have already launched CBDC projects, 14 are at the testing stage, 26 are under development, and 47 countries are exploring the possibilities and prospects of state cryptocurrencies. But, according to Eddy Travia, it is unlikely that national digital currencies will be able to occupy a wide niche and displace assets such as bitcoin or ether from the market.
“States are exploring CBDCs simply because such digital currencies can be controlled, define their own rules and enforce them. I think that state-owned cryptocurrencies have only a narrow niche to work in a world where there are thousands of cryptocurrencies and tokens. After all, CBDC does not have clear advantages,” Travia said.
The CEO of Consilium also commented on the digital yuan project. He stressed that the Chinese digital currency has been repeatedly tested, but has not yet gained much popularity. The thing is that the already existing and popular payment systems Alipay and WeChat Pay offer exactly the same functionality from the user’s side. Therefore, they have no reason to use the digital yuan.
Cryptocurrency podcast host Layah Heilpern previously said that anyone familiar with cryptocurrencies should stay away from state-owned digital currencies, as they are subject to censorship.
Source: Bits
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