Nouriel Roubini a professor and notorious business economist recently stated that CBDCs or the digital currencies being introduced by the various Central Banks around the world posed a real and serious danger for the current crop of cryptocurrencies. This is because the currencies represent a group of currencies whose sole intent is to maintain the current economic structure.

In his latest cryptocurrency article which was made available to the public by The Guardian, he noted that the currencies come with a capability that makes it easier for them to curtail the growth of cryptos such as Bitcoin. He goes on to state that it is only ideal that Central Banks look into ways in which they can be able to come up with their own digital assets.

By developing and later on introducing the digital assets to the public, the banks will be better placed to substitute the existing system which is already plagued by all kinds of issues. If formally adopted, it will become even easier for them to take cryptocurrencies head on, which may lead to the reduced need of their use.

According to the argument brought forth by Roubini, the Central Bank Digital Currencies hold a special place in society, as they facilitate the growth and use of cryptocurrencies in the existing banking system.

According to Roubini, the digital assets would not need to bank on popular DTLs that are currently acting as the official backbone of the crypto community. In the event that a central bank actually released its own digital asset, it would be able to dislodge the various cryptos in use in the region in question.

This is because the crypto assets in use around the world are not decentralized, scalable, secure or even cheap despite popular public deception. The business economist goes on to state that the digital assets from these banks would be able to phase out some of the worthless crypto coins being introduced.

According to his argument, it would be better for the public to adopt the digital assets issued from the Central Banks as it would also make it easier for them to transfer their assets from one banking institution to another. His analysis is based on the fact that the system would be more trustworthy and inclusive for the members of the community.

He concludes the CBDCs argument by stating that both the banked and unbanked individuals would get access to a payment processor that was almost unrestricted, completely competent, and which they could easily access from their handheld devices.

The comments brought forward by the good professor suggests that for cryptocurrencies to be phased out, the manner in which the traditional banking system operates will need to be overhauled. And this is why the main problem with the Central Bank Digital Currencies lies in their introduction will deal a major blow to the current systems as it means that banks will now be in a position to lend out more than they have in their vaults.

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