Reports out today highlight some insight into how Romania’s central bank, the National Bank of Romania (NBR) view cryptocurrencies. This follows an international trend that is seeing more and more central banks weigh in on cryptocurrencies, each with differing views and approaches. In Europe specifically, the majority of countries seem optimistic about cryptocurrencies, therefore this latest news about the NBR seems to contrast against the overarching trend.
According to Business Review (Romania) Mugur Isarescu, the Governor of NBR has spoken out against cryptocurrencies, stating that he does not believe they are an adoptable form of currency, simply because they cannot fulfil the basic functions of traditional FIAT money.
One of the main reasons for this, Isarescu believes, is that cryptocurrencies do not have a trusted issuer, often they can come from an anonymous source and therefore it is not only hard to trust the issuer, but it can also raise security problems and concerns. Moreover, according to Business Review, Isarescu has said that cryptocurrencies can:
“Hardly be called a means of exchange, the number of retailers that accept Bitcoin is insignificant, the number of transactions is small. In the same time, the operation of payments with virtual currencies takes more time and has bigger costs versus the existing payment options.”
See the full report from Business Review for yourself, here-
So, whilst the NBR seem to be against cryptocurrencies as money, Isarescu did suggest that the technology behind cryptocurrencies and the blockchain should still be explored, suggesting that overall, the NBR aren’t against cryptocurrencies, rather they just think changes need to be made before adoption can become a realistic prospect. Of course, we already know that is the case. Cryptocurrencies aren’t a readily adoptable package, before then, cultural and financial changes need to be made, at the very least, the NBR seem to understand that.
Moreover, by agreeing to the fact blockchain technology has great implications, perhaps we will see the NBR look towards producing their own cryptocurrency, for example a FIAT backed cryptocurrency or token for use in Romania. I suppose by designing their own product, they can at least be sure the currency does fulfil the functions of traditional FIAT currency, making it far more adoptable within Romania, according to Isarescu’s notions at least.