Financial market experts believe unattended digital currency is dangerous 2

Financial market experts believe unattended digital currency is dangerous

Financial market experts hold the digital W

Financial market experts say most digital currencies are dangerous without regulation

Image: ZEW

20.09.2019 – According to a survey, financial market experts believe that the introduction and issuance of digital currencies such as Facebook's Libra or Bitcoin without strict legal requirements are for the most part critical.

by Joachim Graf

About 88% of experts believe that digital currencies without close regulatory oversight pose a threat to financial stability. This is the conclusion of a survey by the ZEW – Leibniz European Economic Research Center

among 193 experts in the financial markets. Even with the right regulatory framework adapted to market conditions, only 45% of respondents in digital currencies see an innovation that enhances well-being.

At the end of 2020, experts believe that they are unlikely to be able to pay in Libra, Bitcoin or in a digital currency issued by a national central bank in Germany. On average, for German respondents, this probability is 13% for Bitcoin, 8% for Libra and 4% for a digital currency issued by a central bank. In comparison, respondents from the United States, China and Kenya – in which the country uses M-Pesa's financial transfer and digital money service for several years – have a higher probability of being in the US. daily use of digital currencies.

Experts attach importance to the probability that Bitcoin is the most mundane place, and the least Bitcoin, and Libra is the intermediary. For the year 2020, financial market experts believe that the daily use of a digitized Chinese central bank currency presents a similar probability, such as the use of Bitcoin, the digital currency already used today. This is likely based on the hope that China can issue a digital currency in the coming months. By the end of 2030, respondents had on average 23% of the odds that digital currencies were the main form of payment. Recent criticisms from the German and French finance ministries appear to have considerably weakened the experts' expectations.