Cryptocurrencies Prove Central Bank Models Are Obsolete, Says Professor

Cryptocurrencies Prove Central Bank Models Are Obsolete, Says Professor

A Spanish professor and economist stated that cryptocurrencies have brought out the “obsolescence” of central banks, although their capitalization is still “very insignificant.”

Crypto Is Not Only About the ‘Speculative Noise’

Pablo Agnese, an economics professor and lecturer in the Department of Economic and Business Organization at the Universitat Internacional de Catalunya in Barcelona (UIC Barcelona), told Europa Press in an interview that young people could lead cryptocurrencies to even stronger mainstream adoption.

The academic believes that young people’s flexibility in terms of adopting new technologies, including blockchain, makes them more open to understanding what the world of crypto is about, “beyond the speculative noise.”

On the “obsolescence of central banks,” Agnese says that, together with central banking, it has managed to form a “powerful legal monopoly” that cryptocurrencies have called into question. Hence, he believes that both are incompatible and gives more details about it:

Banking represents centralization, clientelism, and lack of competition, and cryptocurrencies, on the other hand, represent decentralization and competition.

However, the economics professor clarifies that this does not imply that both parties cannot coexist.

Coronavirus, Global Uncertainty Behind Crypto Prices’ Rally

Agnese also referred to the recent rally experienced in Bitcoin and other altcoins in the crypto sphere, stating that said movement responds to “a great speculative factor due to the highly technological and disruptive component, which makes this phenomenon somewhat unusual and with sudden changes.”

The academic contextualizes the skyrocketing of crypto prices in the midst of the “big uncertainty” experienced globally due to the state of global financial health due to the coronavirus pandemic.

On October 13, Spain’s government passed a bill that requires cryptocurrency owners to disclose their crypto holdings and any profits generated from their assets.

Do you agree with the professor’s stance on cryptocurrencies? Let us know in the comments section below.

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