Dash CEO: There’s no escape from state-owned cryptocurrencies

Digital currencies issued by central banks will inevitably appear in financial markets, but will take different forms.

In a recent interview during the Money 20/20 conference, Dash Core Group CEO Ryan Taylor expressed confidence that central bank digital currencies (CBDCs) are the “inevitable future” of global financial markets. 

He is confident that state central banks have a unique ability to issue national cryptocurrencies, but today it is still impossible to predict in what form they will be issued, and how state financial systems and consumers will react after their introduction into circulation.

 The free market may ultimately create better money than the government

Today, governments of all countries are already experiencing competitive pressure or financial problems and are increasingly turning to the topic of digital assets. Sooner or later, they will come to issuance of centralized crypto assets, but Taylor does not think that there will be “big innovations” in centralized cryptocurrency. He also believes that “smaller states will move faster in this direction because the financial risks for them are lower.” Large states with a stable financial sector will begin with strict regulation of the crypto industry. And the United States will be the first to succeed next year.

Various central banks around the world are increasingly showing interest in launching government-backed digital assets. Countries such as India, Thailand, Kazakhstan, Ukraine are currently exploring the possibility of issuing a national cryptocurrency. Venezuela has already launched its own crypto-asset - Petro. 

However, many countries around the world and their central banks prefer to avoid the topic of digital money, despite the EU findings. The representative of The Central Bank of Japan made it clear that national cryptocurrencies are ineffective and their issue makes no sense.. 

A parliamentary study conducted back in mid-summer showed that the issuance of a state digital currency can be considered as a possible “remedy” in the current conditions of lack of government regulation and competition in the crypto sector.