It will be very difficult for central banks and their CBDCs to threaten cryptocurrencies. Experts from Morgan Stanley.
Morgan Stanley comforts Bitcoin fans
Analysts at Morgan Stanley believe that while CBDCs can affect cryptocurrency markets, they are unlikely to pose a threat to decentralized technologies. Reason? Digital, decentralized assets have other uses that make them more attractive to investors.
Morgan Stanley’s chief economist, Chetana Ahyi, explains that bank experts believe that decentralization has already penetrated the mental sphere of many investors. As a result, CBDCs cannot compete with cryptocurrencies.
– Cryptocurrencies will continue to exist as they will continue to work in other use cases. For example, some cryptocurrencies can serve as a store of value because some segments of society do not have full faith in fiat currencies. – He said.
Morgan Stanley also believes that innovators will eventually also prevail on the battlefield against those bankers who are conservative and reluctant to cryptocurrencies. The institution’s report explains that the current macroeconomic conditions have led to massive interest in BTC:
Investor interest in cryptocurrencies has grown with unprecedented monetary and fiscal policies.
Is CBDC a new stage in the evolution of money?
CBDCs are digital, centralized versions of fiat currencies. It is true that some countries use blockchain technology to emit them (e.g. France, which studies CBDC, uses the Tezos blockchain), but this fact alone does not make e.g. a potential e-euro a technological equivalent of BTC. There are many indications that, for example, digital yuan will not be based on blockchain at all.
Thus, CBDC can hardly be considered a new link in the history of money. Projects of this type are only intended to facilitate transactions by making them faster, cheaper and safer, but on the other hand, they may facilitate surveillance of citizens.
Some experts say the CBDCs give too much power to the central bank to monitor citizens’ money flows. Yesterday we also wrote about the fact that the People’s Bank of China may even introduce an expiration date for the digital yuan. Therefore, Morgan experts believe that CBDC will not threaten cryptocurrencies.