Tony Yates: Central bank digital currencies are not worth the cost and risk

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A former senior adviser to the Bank of England and a columnist for the Financial Times, he believes that states should not create central bank digital currencies just to compete with cryptocurrencies.

Tony Yates stated that the usefulnessCentral bank digital currencies are questionable and the risks are enormous. That is, the costs of studying and developing the technology are not justified. The expert believes that the true motives of states that are developing their own digital currency are suspicious, since they already have digital versions of cash.

Statements that digital currencies of the Central Bankwill make life easier for people, are groundless, the former state banker is sure. In his opinion, CBDC should be developed to suppress cryptocurrencies, including decentralized ones such as Bitcoin. However, at the same time, the cryptocurrencies themselves, according to Yates, do not have sufficient monetary support and are unlikely to be able to withstand inflation, so the fight would be pointless.

“I believe that Bitcoin serves no useful purpose, and the carbon emissions from mining could cause an environmental disaster,” says Yates.

The widespread development and launch of projects dedicated to digital currencies of central banks, the expert says, reflects the concern of governments that cryptocurrencies will take a significant share of the market.

Earlier it became known that the Central Bank of the Russian Federation will begin
development of a model for using the digital ruble in international payments already in the first quarter of this year.