As reported by us, The Commonwealth Bank of Australia (CBA) became the first to win a mandate from the World Bank to issue bond-i [Blockchain Offered New Debt Instrument] which is basically a bond issued over a blockchain system. While this has been celebrated by the blockchain community across the world, not everyone is pleased with the move. According to one of the latest reports on AIER, Jeffrey Tucker, Editorial Director for the American Institute for Economic Research (AIER) is not a fan of the bank moving from fiat to cryptos.
The bond-i would be operated over a private blockchain from the World Bank (based in Washington) to the Commonwealth Bank of Australia (based in Sydney). This blockchain would be based over an Ethereum network. In a press statement, the CBA also stated that they are open to the possibility of more blockchain integrations in the future.
Jeffrey Tucker, in his latest report on AIER wrote,
“Thanks to decentralized-ledger technology and some impressive innovations to create digital money and banking solutions, the technology operates peer-to-peer and requires neither government nor intermediaries to operate. We are beginning to see what real choice in currency might look like. The technology has only been around since 2009, but it’s become the most exciting thing in money and finance on the planet,”
Jeffrey Tucker, however, is not a big fan of this move to cryptocurrencies. He stated that central banks should stop considering over the possibility of creating a bank-backed digital currency that would have a global acceptance. As per him, financial institutions and regulatory bodies need to ensure that the fiat currencies remain stable and that the banking systems do not collapse.
Commenting further on the problems faced by the modern states, Tucker commented on the fact that economic depression, government debts as well as inflation are all on the rise. While he says that cryptocurrencies are indeed an exciting thing at the moment, the state must not involve itself with cryptos and should focus on ensuring that fiat money remains stable and safe. Tucker adds that cryptocurrencies give people ‘too much control’ over their money.
There have been many in the past who have commented on a similar matter, stating that cryptocurrencies may pose a risk to the existence of fiat currencies in the long run and there are many who have opposed this view too. Only time could tell where this economic tussle between fiat and virtual currencies leads to.
