Opinion: Libra remains the main threat to bitcoin, and CBDC is just a weak "defensive stance" for central Banks

BlockBeats news, Cointelegraph reports that economist John Vaz believes bitcoin faces growing challenges in payments and is being used largely as a speculative tool. Libra, a payments network built specifically for scale, could soon become bitcoin's main rival, despite problems with regulators.

Vaz dismissive of the central bank's digital currency (CBDC), which he describes as a weak "defensive stance" that merely addresses the threat posed by cryptographic assets to its money supply and credit controls.

"Under fractional-reserve, Banks can lend that money up to 8-9 times," Vaz explains. "so a lot of Banks create a lot of money supply through fractional-reserve. But with bitcoin, you can't lend something you don't have."

He said CBDC would not offer any benefits other than peer-to-peer settlement - "this is provided by default by cryptocurrencies, and central bank digital currencies may be more about tracking currencies than providing benefits."

Source link:https://cointelegraph.com

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