- Politician Duleep Singh sees cryptocurrencies as a threat to national security
- But he believes that the introduction of CBDC will save the situation
American politician Duleep Singh spoke on the Senate Banking Committee with a loud statement about CBDC. This official previously served as chief economic adviser to President Joe Biden. And before that – Deputy National Security Adviser to the United States.
Like many officials before him, Singh has been critical of cryptocurrencies. He stated that digital money facilitates ransomware attacks and facilitates evasion of US sanctions.
At the same time, Singh believes that the US authorities can take actions that compensate for the negative impact of cryptocurrencies. He pointed to the need for a central bank digital currency (CBDC):
“This is the best step we can take [для защиты национальных интересов]because it will displace the cryptocurrency ecosystem”
The official added that the administration is now actively dealing with this issue.
He’s not the only one who thinks so. Franklin Knoll, president of the consulting firm Noll Historical Consulting, voiced a similar idea last year. He is confident that CBDCs can crowd out “private cryptocurrencies.” The expert paid special attention “stablecoins focused on retail payment areas”. However, Knoll believes that cryptocurrencies will not disappear completely, but “remain in niche payment systems.”
Earlier we wrote that the UK Central Bank is looking for a person who will head the CBDC department.
