![\"Pop-the-balloon\"](\"https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/07\/Pop-the-balloon-300x169.jpg\")
<\/p>\n<\/p>\n
There is a series of articles between central bankers and diplomats these days.<\/p>\n
Not all are favorable to cryptocurrencies…<\/p>\n
<\/p>\n
<\/p>\n
Martin Wolf<\/a>, the chief economic commentator at the Financial Times<\/a> has a pretty stern views<\/a> on cryptocurrencies while he favors the creation of CBDCs (see our article Should Central Banks issue digital currencies?<\/a> for the difference between the two):<\/p>\n “Fiat cryptocurrencies” like bitcoin are used in many cases to launder money, finance hack and other crimes, while they meet none of the criteria for usable money<\/span>.<\/span><\/p>\n Stablecoins, aka CBDCs, are backed by a regular currency and are expected <\/span>to sustain crisis and ‘runs’. They therefore need to be regulated by central banks<\/span>. These new digital assets have the major benefit of giving access to financial systems to many un-banked individuals, although many will not gain access still.<\/span><\/p>\n In Mr. Wolf’s opinion, while cash remains the cheapest form of payment for small amounts),\u00a0<\/span>it makes sense to augment standard currencies <\/span><\/span>with a new form of digital payment<\/span>.<\/p>\n These new digital assets will still have its difficult questions:<\/p>\n <\/p>\n Robert Manning<\/a>, the diplomat from the Atlantic Council and the Department of State, went even further in his opinion<\/a> published in The Hill<\/a> on July 25th, in which he calls for a ban of cryptocurrencies, no less.<\/p>\n His main arguments:<\/p>\n Mr. Manning also calls for the creation of CBDCs, but he doesn’t see the need for cryptocurrencies at all<\/span>. They are used by dark purposes, they have wild value swings and they cause serious environmental hazards (electrical consumptions).<\/p>\n Meanwhile 81 countries, representing 90% of the world’s GDP, are at various stages of developing CBDCs<\/span> according to the Atlantic Council’s CBDC tracker<\/a>. The four largest central banks ($, \u20ac, \u00a3 and \u00a5) are in this process, while China is further in the digitalization process of its currency. They are likely the way to go.<\/p>\n Mr. Manning also asks:<\/p>\n <\/p>\n Those questions are made for the G20<\/span>, and would be a serious test to President Biden’s leadership<\/span>.<\/p>\n <\/p>\n <\/p>\n <\/p>\n <\/p>\n In chronological order<\/p>\n\n
![\"Ban-the-ban\"](\"https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/07\/Ban-the-ban-300x169.jpg\")
The Hill: Bye-bye, bitcoin: It’s time to ban cryptocurrencies<\/h3>\n\n
\n
![\"G20\"](\"https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/07\/G20-300x200.jpg\")
<\/p>\nThe various articles:<\/h4>\n
![\"BIS](\"https:\/\/navesinkinternational.com\/wp-content\/uploads\/2021\/07\/BIS-CBDCs-an-opportunity-for-the-monetary-system.jpg\")
<\/a>