Nouriel Roubini Says Central Bank Digital Currencies Won’t Be on Blockchain

Nouriel Roubini Says Central Bank Digital Currencies Won’t Be on Blockchain

Nouriel Roubini, American economist and notorious crypto critic has argued that if central bank digital currencies (CBDCs) are adopted, they will not be based on blockchain.

Roubini, known as “Dr. Doom” for his prediction of the 2008 housing bubble collapse made his comments during a joint panel with Ethereum (ETH) co-founder Vitalik Buterin at the Deconomy conference in Seoul, South Korea, on April 4th.

As previously reported, CBDCs are distinct from cryptocurrencies in that they are digital currencies issued by a central bank whose legal tender status depends on government regulation or law.

During the panel, entitled the “Fundamental Value of Cryptocurrency and its Sustainability,” Roubini attempted to deflate enthusiasm about central banks’ research into the issuance of CBDCs, arguing that they won’t be issued on the blockchain or other distributed ledger technologies.

He said:

“As soon as there is news about [CBDC issuance] the people in crypto get excited and say, see it’s becoming mainstream […] but if you look carefully about what they want to do, if and when they’re going to do it, it’s not going to be blockchain, it’s not going to be crypto […] it’s going to be on a single ledger, secured.”

Roubini talking about prospective impact of CBDC adoption, noted that only banks have access to the balance sheet of central banks in the current financial system, and private individuals and corporations have to go via the banking system as an essential intermediary.