A Governor of the Federal Reserve claimed that Cryptocurrencies like bitcoin and Central Bank Digital Currency (CBDCs) are Over-hyped technologies, which are not needed in actual.
In the present time, the world is moving toward the crypto and blockchain industry adoption at their level as per needs. In particular, the majority of tech Companies showed a huge inclination toward blockchain technology because of the reliability of the data. In reality blockchain adoption is in initial phase, where technology companies are slowly integrating it into their ecosystem and financial companies are looking at crypto and blockchain both because at one side Blockchain can provide better security than at another side crypto can provide better liquidity, which is not easily possible with traditional system because of isolated domains.
Recently Christopher Waller, U.S. Federal Reserve Governor, passed comments on Cryptocurrencies and Central Bank Digital Currency (CBDCs) as a noneffective or non-much-needed technology.
Speaking at the panel on CBDCs, Christopher said that Digital assets are not tools or systems for payment purposes but are working better as a function to hold or store for the assets and described it as an instrument just like “electronic Gold”. The governor tried to say that Blockchain or crypto technology may hold information or representation of physical assets.
Governor also noted that Blockchain and crypto technology are not efficient to perform the storage function, so it is just overhyped technology.
“We know distributed ledger blockchain is one way of doing transactions and record-keeping, but it’s not efficient.”
Christopher also said that CBDCs concepts are introduced to facilitate transactions at high speed but already other systems are working and providing the same.
Besides all these things, Christopher claimed that the government’s efforts toward CBDCs research are only because of hype about it everywhere.
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