BENGALURU: Does cryptocurrency have the potential to replace fiat (government-backed) money in the near future with an increasing interest of major technology companies in the former, such as Facebook launching Libra? Michael Casey, advisor to Media Labs at Massachusetts Institute of Technology (MIT), argued that one could expect a “multi-currency world in the digital framework and that there is no doubt that the world is heading towards a digitalised economy”.
KP Krishnan, former secretary, Economic Advisory Council to the Prime Minister, said digitisation of currency will “seriously challenge traditional structures. Trust in currency is at the heart of all functions of Central banks,” he said, speaking on ‘Redefining Money for a Digital future’ in a virtual forum organised by the Synergia Foundation.
Casey said that with China’s Central Bank integrating digital currency wallets into existing retail bank accounts, there could be a shift in global currency. “The US leadership in the world is being challenged under an isolationist President.
With the ongoing pandemic whether the Chinese Yuan emerges as a challenge to USD needs to be seen,” he added. B Sriram, Director, ICICI Bank and former managing director, State Bank of India, said a shift from fiat money to cryptocurrency would require “financial literacy, ecosystem and consumer mindset, which is largely cash-driven,” he said.