Board member of the Czech National Bank Tomasz Golub expressed doubts about the prospects of the state cryptocurrency concept and called it “helicopter money”.
Tomas Holub told 4H Production journalist Martina Sobkova during an interview that the role of the state cryptocurrency in providing direct liquidity to customer accounts was a technically “attractive concept”.
However, Golub called government cryptocurrencies “helicopter money” because he does not yet see a solution that can provide answers to questions related to the nature of government cryptocurrencies.
According to Golub, unresolved questions about the nature of government cryptocurrencies include challenges in determining whether a digital currency will be anonymous or not, whether anti-money laundering standards will apply to an anonymous option, and whether government cryptocurrencies will earn interest.
A member of the board of the Central Bank of the Czech Republic said that if you ask these questions, then there will be many more difficult tasks, which have not yet been solved by any project of the state cryptocurrency. Golub also mentioned Czech legislation, which, he said, does not give the Central Bank the authority to issue loans to citizens in the form of digital currency in accordance with the standards of European legislation.
When asked if the Czech Republic would be one of the first countries to issue a state-owned cryptocurrency, he said that the share of cash currency in circulation is still quite high and growing in the long term, which contradicts the idea of a liquidity crisis that could trigger the launch of such initiatives. However, the digital currency of the central bank may be issued in the future, Golub said.
Many central banks are thinking about issuing a government cryptocurrency. This week, the Bank of Japan created a new division to accelerate the development and release of the government’s cryptocurrency. The Central Bank will cooperate with European banks and think tanks. In addition, last week the Bank of England expressed interest in issuing a state-owned cryptocurrency, stating that these efforts “have tremendous implications for the future of payments and society.”