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

A former senior adviser to the Bank of England, Financial Times columnist believes that states should not create central bank digital currencies just to compete with cryptocurrencies. Tony Yates Says The Benefits Of Central Bank Digital Currencies Are Questionable And The Risks Are Huge. That is, the costs of studying and developing technology are not justified.. The expert believes that the true motives of states that develop their own digital currency are suspicious, since they already have digital versions of cash. Statements that the digital currencies of the Central Bank will make life easier for people are groundless, the former state banker is sure. In his opinion, CBDC should be developed in order to suppress cryptocurrencies, including decentralized ones such as Bitcoin.. However, 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 can 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 occupy a significant market share. Earlier it became known that the Central Bank of the Russian Federation will start developing a model for using the digital ruble in international settlements in the first quarter of this year.