The word „cryptomoney“ is a misnomer because it is not a coin, according to Roubini.
Nouriel Roubini, an award-winning economist and well-known Bitcoin (BTC) skeptic, is confident that digital central bank currencies, or CBDCs, are the future of money.
According to Roubini, global CBDCs like the digital yuan are capable of replacing major financial services and crypto-currencies in the near future. „They are going to be displacing digital payment systems, or in the private sector, starting with the crypto-currencies that are not really currencies,“ the economist said in a November 7 interview with Yahoo Finance.
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Roubini predicted that a CBDC-driven „revolution“ would come perhaps within three years:
„So not only do you not need crypto coins, you don’t even need Venmo. You don’t even need a bank account. You don’t even need the cheque. And the big revolution we will see in the next three years will be the digital currencies of the central banks.“
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In addition, the world-renowned economist is confident that cryptomoney itself is a „misnomer“, because a currency must provide a unit of account. „Nothing is priceless in Bitcoin or any other crypto-currency,“ Roubini argued, saying that cryptomoney provides neither a „single numerator“ nor a „scalable means of payment.
However, Roubini did admit that Bitcoin could serve as a store of value, which is an important function of money along with a unit of account and a means of exchange:
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„Maybe it’s a partial store of value, because unlike thousands of other what I call shitty coins, it can’t be degraded so easily because at least there’s an algorithm that decides how much the supply of Bitcoin increases over time, because for most of those others, it’s literally done ad hoc, and they’re degrading faster than the Federal Reserve.
Roubini has also criticised decentralised finance, one of the main trends in the cryptomarket in 2020. „The DeFi was vaporous from the start,“ the economist argued in late September 2020, adding that industry is „totally hesitant because the block chain was always the most overrated technology in human history.