According to the Swiss National Bank board member Andrea Maechler, private cryptocurrencies have advantages over central bank cryptocurrency Cointelegraph auf Deutsch reported Sunday.
The Swiss National Bank board member told an audience in Zurich that private cryptocurrencies are better and less risky than nationally distributed versions. She also added that a government issued digital currency could increase bank runs.
“Digital central bank money for the general public is not necessary to ensure an efficient system for cashless retail payments. It would deliver scarcely any advantages, but would give rise to incalculable risks with regard to financial stability.”
Maechler’s negative attitude towards nationalized cryptocurrencies contrasts with many governments around the globe, many of which are launching their own coins.
The banker also sees problems with decentralized digital currencies as they cannot compete effectively with traditional currency requirements. Maechler also stated that cryptocurrencies lack the requirements of money, referring to their applications as a medium of exchange, vehicle for long term value storage, and stable accounting units.
She also addressed that blockchain Distributed Ledger Technology has the potential to reduce costs and increase transparency behind international money transfers. Furthermore, Maechler stated she does not believe Distributed Ledger Technology does not meet the requirements for Real Time Gross Settlement payment systems presently in place.