Cryptocurrency isn’t a currency: Portugese Governor


As per the article in Portugese publication ECO, Portugal’s Central Bank governor has stated that cryptocurrency isn’t a currency. For the governor, these changes are technological advancements, where is sees huge potential in blockchain technology  but not the cryptocurrency. A crypto-currency is not a central bank registered note and neither is controlled by any central bank. Hence, this currency does not have right to generate credit. He stated

A currency, to be classified as such, needs to have two fundamental characteristics: The first is to associate itself with the idea of store of value, then, on that currency there must be a right to credit. When a central bank creates a currency, it creates a liability on its balance sheet that has to be paid. If, one day, everyone was to hand that currency over to their banks, than the central bank would have to pay, and the liability would be eliminated.

In my opinion, that’s what the crypto-currencies like Ripple are struggling for . The ripple team is rigorously meeting key personnel from leading global banks to become the key technology in their currency exchange system. The current digital asset trading scenario would certainly working as a strong use-case for banks/ regulatory bodies to accept this as a crypto-currency. Future might fill in this much needed gap!!!

Also, recent advancements on acceptance of digital currencies by countries like Estonia, where they intent to launch a national digital currency, and Australia, where the senators are pushing in new bills/laws to increase acceptance will certainly help in increasing the global acceptance of this asset as an official currency.

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