CBDCs Do Not Possess the Same Advantages as Bitcoin

Vasily Solodkov, a professor at the Higher School of Economics in Russia has told that central bank digital currencies (CBDCs) will not provide many of the advantages of a cryptoasset like bitcoin.

“The digital ruble will not have the indisputable advantages of existing cryptoasset as anonymity, cross-border functionality and a finite supply,” he stated speaking in an interview.

The expert added that payments firms would likely suffer as a result of the Central Bank’s project.

“Bitcoin’s main advantage is its ability to bypass various restrictions. You buy bitcoin, pay it to anyone, anywhere, or vice versa. You get paid in bitcoin, you sell it and get your money. Can this be done with a digital currency offered by the Central Bank? Most probably not,” he added.

As previously reported, Sberbank, a state-owned largest Russian bank, is planning to launch a new blockchain-based trading platform with native token, ‘Sbercoin’. The bank is planning to svitch to crypto in 2021 when a new law “On Digital Financial Assets,” or DFA, is set to come into effect.