Is There a Point for Central Banks Releasing Digital Currencies?

• Alan Greenspan recently made some comments on the state of governments, saying that there’s “no point” for central banks.
• Greenspan’s argument was allegedly hanging on the fact that country fiat currencies are supported on sovereign credit.
• “The fundamental sovereign credit of the United States is far in excess of anything Facebook can imagine.” 

Alan Greenspan recently made some comments on the state of governments, saying that there’s “no point” for central banks to start launching their own cryptocurrencies. According to a CNBC report published on November 11th, the former chair of the United States Federal Reserve spoke on the matter during the yearly economic outlook conference hosted by the Chinese financial magazine, Caijing. 

The Former Chair

As a little background on Greenspan, the former chair was working as head of the Feds as the Black Monday stock market crash occurred in 1987. He was at the helm during the tech boom of the 1990s, the Mexican, Asian and Russian financial crises (1994, 1997, 1998, respectively) and the dot com bubble bust in 2000.

Following, the historic 2008 financial crash, Greenspan’s reputation has taken a bit of a hit.

No Need for Libra

Greenspan’s argument was allegedly hanging on the fact that country fiat currencies are supported on sovereign credit, which is a provision exclusively used for the nation-state, whatever it may be, as well as its institutional body. 

As per CoinTelegraph:

“Not even the tech behemoths in the age of FAANG’s ascendancy — an acronym for the world’s five most successful tech stocks, Facebook, Amazon, Apple, Netflix and Google — can compete with the depth and breadth of the U.S.”

Greenspan stated”

“The fundamental sovereign credit of the United States is far in excess of anything Facebook can imagine.” 

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!