Former Reserve Bank of India (RBI) governer and IMF Chief, Raghuram Rajan, sees value in cryptocurrencies, particularly Bitcoin and Facebook’s Libra.
In a CNBC podcast called “Beyond the Valley” Rajan told the media outlet that cryptocurrency, bitcoin, and Facebook-backed libra could play a role in a world where central banks worldwide begin to issue their own digital currencies.
Mr. Rajan also compares Bitcoin with gold stating that Bitcoin is a speculative asset just like gold. The only advantage gold has over Bitcoin is that people can still make jewelry out of it.
“So the bottom line I think is different private currencies will do different things and it may be bitcoin has value going forward just as a store of value, or as a speculative asset. While libra may be the kind of currency which is used more for transacting,” says Raghuram Rajan.
Although Mr. Rajan has taken a pro-cryptocurrency stand, he argues that cryptocurrencies are not better than cash. He says that Cash is completely anonymous while cryptocurrency may look anonymous it doesn’t mean it is. There is still a digital signature being created here and there.
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