Will CBDCs replace crypto? Bittrex CEO Says Government Program Is a Solution Looking for a Problem

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Bittrex Global CEO Oliver Finch has doubts about the legitimacy of central bank digital currencies (CBDCs).

Finch says in a new Kitco News interview that CBDCs are a solution in search of a problem.

According to the CEO of Bittrex Global, the centralized nature of CBDCs makes them inherently different from Bitcoin (BTC) and other crypto assets.

Basically, the heart of the concepts of cryptocurrency and digital assets, in general, is a distributed ledger, it is this distributed ledger technology, it is blockchain.

And so when you bring in people, and by people, I mean central governments and central banks, saying oh were going to do a CBDC without distributed ledger technology, I just get a bunch of people standing around saying, just because you put the word digital doesn’t mean it’s important or exciting or that I want to be a part of it.

So I think before you can say is it going to crowd out altcoins, is it going to crowd out bitcoin, is it going to crowd out stablecoins, you just have to ask yourself, what does that look like? What is this product? Why is it? And right now there’s just this feeling that governments are jumping on the bandwagon, you’re putting the word digital in front of everything

It is not enough to put the word digital. There must be a purpose to this. And right now, it looks like CBDCs in general are a solution in search of a problem.

Finch says that in addition to making cross-border transactions faster and cheaper, the concerns and suspicions CBDCs have raised about their purpose are warranted.

There are legitimate reasons for this. And I think you don’t need to become the kind of conspiracy theorist about real motives. But I think actually when we get into the shallowness for those reasons, it gives a slight pause as to what’s really going on.

So yes, cross-border fiat currency payments are a hassle. They’re expensive, they’re slow, they’re slow. You can just solve this problem or ask the bank to solve it directly, but I guess that may be more difficult than creating a CBDC.

So, for cross-border transactions, there is likely a use case. But then you run out of reasons.

I

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