Former head of MicroStrategy doubts the success of CBDCs

Michael Saylor thinks bitcoin could become the best form of money

10.10.2022 - 14:25

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2 min

What’s new? Michael Saylor, former head of MicroStrategy, said that central bank digital currencies (CBDC) are unstable and doomed to fail. In his opinion, bitcoin can become the best form of money due to the fact that it is a scarce asset. He wrote this on Twitter, referring to an article that mentions similar points. The authorship belongs to an anonymous user under the nickname dergigi.

Link to the tweet

What does the article say? According to the author, CBDC has no future and, like all digital money, it will fail. He noted that questions about "printing, farming and serving" point to the reasons why digital money has failed in the past:

“admins” abuse their power and print more;
“players” find ways to earn more through cheaper modes of production;
“the arena” ceases to exist, either through bankruptcy, intervention, or collapse.

He speaks positively about bitcoin, specifying:

“Bitcoin is the first money that is digital but not virtual. The processes in Bitcoin are not subject to opinion or interpretation. They are not a simulation, which is why Bitcoin can’t be paused, restarted, or stopped.”

In late September, the Bank for International Settlements and the central banks of Israel, Norway and Sweden announced the launch of the project Icebreaker, a joint study of the possibilities of using CBDC for international payments and money transfers. The final report is expected in the first quarter of 2023.

In October, SWIFT successfully completed tests of national cryptocurrencies. The French and German central banks as well as large financial institutions, including HSBC, Standard Chartered and UBS, took part in the experiment.

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