ECB Official Bigs Up ‘Wholesale’ Central Bank Digital Currency, Disregards Bitcoin
Lithuania’s central bank governor Vitas Vasiliauskas has talked up the ‘viability’ of central bank digital currrencies whilst stressing they will perform as money, unlike ‘private crypto assets’. | Source: REUTERS/Ints Kalnins/File Photo
By CCN: The Chairman of the Board of the Bank of Lithuania has spoken about the merits of central bank digital currencies. He has labeled them as a new, more efficient, offering from central banks across the globe. Vitas Vasiliauskas has gone on to mention the benefits of distributed ledger (DLT) in regards to mitigating the need for intermediaries.
Vasiliauskas, whose country’s central bank falls under the BIS, was speaking at a Washington conference made public earlier this week.
Vasiliauskas underlined how a central bank digital currency (CBDC) would be a unique ‘novel’ kind of central bank money. Notably, he added that it would be true money as in his and the BIS’s view, cryptocurrencies such as Bitcoin do not fall into that category.
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A new central bank money
Vasiliauskas explained that currently, the central banking system issues two kinds of money. However, if they were to open the doors on CBDCs, it would allow them a third offering that could have many benefits derived from permissioned blockchain technology.
“Under the current financial architecture central banks issue two sorts of money: currency in circulation in the form of the good old banknotes and coins,