Brad Smith, the President of Microsoft, has slammed efforts of private companies who issue digital currencies, saying only Central Banks of countries should have the right to do so. He shared this sentiment during a virtual conference held by the Bank of International Settlements.
According to Smith, a fundamental task such as currency issuing needs to be left to a body that answers to the public rather than in the hands of a few private hands. To him, the common good of an economy should depend on bodies answerable to the masses.
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His sentiments resonate with the company’s staunch criticism against the issuance of stablecoin. The company criticized Facebook’s Libra project when it was announced in 2019. The criticism is based on the worry that privately issued currencies posed a threat to the sovereignty of a country’s monetary policy.
Politicians and financial bodies have come out to share their voices about digital currencies. Most agree that Blockchain technology is good for humankind but needs deeper research before rolling it out to the masses.
Smith proceeded to declare that Microsoft wasn’t a bank and wouldn’t want to compete with banks. His comments are backed by the company’s statement in February where they made it clear that they wouldn’t follow Tesla or other companies in investing in Bitcoin.
Interestingly, more central banks around the world have begun to work towards issuing a national digital currency. The central bank digital currency (CBDC) movement is gaining traction as demand for digital payment systems have increased following the pandemic; China, Japan, Russia and a host of others have made notable progress in this field.