April 24, 2018 389By Frankie Crowhurst
“The idea of the supply of currency and thinking about currency really belongs more in the sphere of government and central banks. My view is it’s really more of a promise of technology.”So why, in Williams view, does cryptocurrency not pass the basic test of what a currency should be? He starts by noting the issue of store of value. He defined a currency as;
“…basically something with a store of value, and that currencies need to be ‘elastic’ to be able to support varying economic and financial conditions.”He also addressed the big issue that has been one of the crypto markets biggest downfalls, and that is that risk of scams and the fact that many people believe that they can help to facilitate crimes. He said;
“The setup or institutional arrangement around Bitcoin and other cryptocurrencies, first of all they have problems with fraud, problems with money laundering, terror financing. There’s a lot of problems there.”He used another negative reason that is quite often pointed out with cryptocurrencies, and that is the price volatility. He sees this as a huge negative, that makes it very difficult for one to determine the correct prices for items. It is a topic that is definitely split down the middle. Some experts will defend cryptocurrencies, noting the huge potential it has, and how it could work alongside fiat currency, yet many others, namely financial and banking experts, simply cannot see past the fact that it is unlikely to completely replace fiat currency any time soon.