Romanian Central Bank Official states Crypto will not replace Traditional Currency

An official in the Romanian central bank has said that cryptocurrency won't replace money issued by central banks as it isn't necessarily BlockShow started Campaign to collect Crypto for Notre Dame’s Reconstruction money. The information was published by local media outlet Business Review on April 16.

Daniel Daianu, a part of the Romanian National Bank (BNR)'s Administration Council, allegedly emphasized the requirement to know about the gap between associations and their functions, ensuring those jobs won't evaporate. Daianu also dealt with the importance of making the distinction between blockchain engineering and electronic currencies. Daianu said:

“In my opinion, these are financial assets, not cryptocurrencies, and they won’t be able to fulfil the basic roles of currency. […] Cryptocurrencies will never be able to substitute the currency issued by a central bank. What can happen is for central banks to have a digital currency, but that will also be issued by the bank, and commercial banks will receive digital currency that can multiply. I do agree, however, that new technologies lead to disintermediation and this feature of decentralization shows us the merits of networks.”

Romania — that became the earliest Eastern European chapter affiliate American nonprofit corporation Bitcoin Foundation back in 2014 — published a draft Emergency Ordinance that governs the issuance of electronic money (e-money) past July.

The draft reportedly explained electronic currency as”financial value stored digitally, such as magnetic, representing a claim on the issuer issued on receipt of funds with the intention of performing payment trades and that is approved by an individual aside from the issuer of electronic money”

Also Read: BlockShow started Campaign to collect Crypto for Notre Dame’s Reconstruction

A recent report by the World Economic Forum (WEF) revealed that 40 central banks worldwide are running research projects and pilots using blockchain engineering that aims to deal with such problems as fiscal inclusion, payments efficacy and cybersecurity. The WEF supplied ten usage cases for dispersed ledger technologies аt central banks such as the growth of retail central monetary money, amongst others.

Source