SNB’s Maechler – cryptocurrency hype, high volatility, speculative instrument
Swiss National Bank Governing Board member Andrea Maechler spoke overnight, I posted up some comments from her on the franc:
She also made remarks relevant to BTC et al, basically that cryptos will not replace conventional currencies:
- “Digital central bank money for the general public is not necessary to ensure an efficient system for cashless retail payments”
- would deliver scarcely any advantages
- would give rise to incalculable risks (eg. financial stability)
Said the hype built up around cryptocurrencies
- far outweighed their actual use
Money must be a viable medium of exchange and be a stable unit of account for the value of the goods and services that are exchanged, she said, adding it should also be used as a long-term store of value, for example for saving. “Cryptocurrencies such as the much-discussed bitcoin do not perform these functions adequately, if at al,”
Digital currencies had a high degree of price volatility
- more of a speculative investment instrument than a means of payment capable of maintaining their value
Said distributed ledger technology (blockchain) had potential
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