Bitcoin cannot be considered currency as it does not provide a unit of account, says Nouriel Roubini
Renowned American economist and Bitcoin naysayer, Nouriel Roubini has shown his confidence in central bank digital currencies (CBDCs) being the future of money. In an interview with Yahoo Finance, the economist, also popularly known as Dr. Doom, yet again took a dig at cryptocurrencies, stating that CBDCs like the digital yuan are capable of replacing major financial services and cryptocurrencies in the near future.
Famous for predicting the United States housing bubble of 2007-08, Roubini has been one of the premier critics of Bitcoin over the years. He had previously referred to cryptocurrencies as the “the mother of all scams and bubbles”.
However, his stance towards digital currencies, especially CBDCs have softened in recent times. “They’re gonna be crowding out digital payment systems, or in the private sector, starting with cryptocurrencies that are not really currencies”, he explained.
The world is heading towards a CBDC powered revolution in the next three years, the award-winning economist stated. “So not only you don’t need crypto, you don’t even need Venmo. You don’t even need a bank account. You don’t even need the check. And the big revolution we’re going to see in the next three years is going to be central bank digital currencies”, he explained.
Roubini, who teaches at New York University’s Stern School of Business and is chairman of Roubini Macro Associates, stated that for something to be called a “currency” it needs to be a unit of account, and a stable store of value that is not very volatile. He then restated that cryptocurrency is itself a misnomer because a currency needs to provide a unit of account.
“Nothing is priced in Bitcoin or any other cryptocurrency”, Roubini argued, claiming that crypto does not provide either a “single numerator,” or a “scalable means of payment”.
However, Roubini did admit that Bitcoin could serve as a store of value, which is a major function of money alongside a unit of account and a medium of exchange, saying “It’s maybe a partial store of value, because, unlike thousands of other what I call shitcoins, it cannot be so easily debased because there is at least an algorithm that decides how much the supply of Bitcoin raises over time, because for most of those other ones, literally, is done ad hoc, and they’re being debased faster than what the Fed is doing”.