Nouriel Roubini continues to disdain and reject all things crypto. In an interview with Bloomberg TV, Roubini Macro Associates’ economist and CEO expressed his continued disdain for Bitcoin and other cryptocurrencies, predicting that CBDCs would take over.
He rejected the argument that Bitcoin and Crypto are currencies, calling it a “misnomer.” He clarified that they weren’t units of account or scalable, and that Bitcoin could only process five transactions per second, while the Visa network could process 25,000.
The large number of tokens involved, according to Roubini, was like going back to barter.
He questioned if Cryptocurrencies were commodities, claiming that if they were, they would have to generate income in the same way that stocks, shares, loans, and real estate do. Unlike Bitcoin, which has no revenue, no utility, and is nothing more than a “self-fulfilling bubble.”
Central Bank Digital Currencies (CBDC) will, in his opinion, dominate payment services. However, he also said that CBDCs would just be a digital manifestation of something that is already partly digital, and that every central bank would eventually have them.
He said that once CBDCs are up and running, “everyone will have an account with the central bank” and that transactions will be “securely, cheaply, and with instant settlement.”
The Chinese would be the first to implement their CBDC, the European Central Bank would have its digital euro, and the Fed would have to act because the Chinese Renminbi could become the global reserve currency, according to Roubini.
Roubini was asked at the end of the interview what he felt the greatest danger for 2021 was. He responded that the return of inflation may have consequences for bonds and stocks. He also brought up the growing tension between the United States and China, as well as how such events could lead to a military confrontation.
“the cold war is becoming colder and there is even a risk of a hot war rising over time”