Should Crypto Stay Decentralized or Are CBDCs Better? Experts Answer

There are several countries around the world that are developing national blockchain-based digital currencies - such as Venezuela and its state-owned Petro, China and its plans to issue a government-backed digital currency, etc.

We reached out to experts in the crypto and blockchain industries, central bank officials and researchers to answer whether or not we need a blockchain-based national digital currency if decentralized cryptocurrencies already exist.

Later, a European Central Bank official highlighted the benefits of CBDCs and the International Monetary Fund published a report saying that central banks might issue digital currencies in the near future.

Within 10 years, I expect that every major fiat currency in the world will be a digital currency on a blockchain.

Governments currently supply digital currencies but typically only to banks.

Decentralized cryptocurrencies are not a substitute for a government currency.

Decentralized currencies do not satisfy some of the reasons why governments issue currency, such as retaining control over monetary policy, earning seigniorage and retaining the ability to have a lender of last resort.

Decentralized cryptocurrencies need to overcome a variety of hurdles before they could challenge government-issued currency.

Blockchain-based digital currencies issued by central banks are nothing like decentralized cryptocurrencies.

A number of central banks have played with the idea of issuing a blockchain-based digital currency, but have come to the preliminary conclusion that, for now, the issuance of such digital currency is not the way to go.