SWISS Central Bank Economist : Blockchain Technology Not Ideal For CBDCs
Central Bank Digital Currencies are aware about Blockchain technology. According to them they can take small advantage of Blockchain technology’s features but full adoption of Blockchain technology in the financial system is inefficient.
Carlos Lenz, the chief economist at Swiss National Bank, said that adoption of Blockchain Technology in CBDC banks can’t result in profit for them. But the structural system in Blockchain technology’s features can give little advantage to us.
The features of Blockchain Technology are inefficient for CBDCs bank, so Blockchain technology can’t be an ideal solution for CBDCs banking system.
“One could imagine a direct account with the National Bank, not that we want to do that, but that would be the simplest form. Or you can rely on completely decentralized solutions on a blockchain where there is no central authority. However, blockchain is very inefficient. I don’t think a decentralized solution is ideal.”
Through this statement he tried to explain how ownership is attached with the Blockchain & traditional financial system.
If they adopt blockchain technology then surely they will not be able to use public money for further use and grow.
So probably this is going to be a tedious problem for them to serve their services to people with Blockchain Technology.
“We had such discussions when the euro was introduced. There was also fear that the payments would suddenly be made in euros. But that did not happen.”
Through this statement he explained that the swish central bank is fully confident with their decision to not to adopt blockchain technology.
And indirectly they tried to criticize Switzerland that they are right if they don’t want CBDCs like financial authorities in their country.
Lenz also said, our current existing financial system is working very well and we don’t need another alternative.
While we are also working on blockchain technology to use its features, in the near future we are not going to launch a digital franc, ongoing project.
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