Crypto: Vitalik Buterin warns against CBDCs

While an increasing number of countries are considering launching a CBDC (Central Bank Digital Currency), Vitalik Buterin is dashing hopes. Known for being a staunch advocate of crypto, it seems he is less enthusiastic about the direction CBDC creation is taking.

CBDC Development Is Far from What Vitalik Buterin Envisioned

Many influential figures shape the crypto ecosystem, and among them is Vitalik Buterin. The co-founder of Ethereum, the second-largest cryptocurrency by market capitalization, has grand plans for the industry. However, he does not appear to be a fervent supporter of CBDCs.

In a recent interview with CNBC, the youngest crypto billionaire stated that his views have changed significantly over the past five years. Indeed, he had hopes for this project a few years ago. However, the new direction does not sit well with him.

According to him, a national digital currency could improve the lives of citizens. But for it to work, decentralization should be the rule. In the current case, CBDCs appear to be the new version of the banking system, with much more surveillance.

Crypto for Boosting the Economies of Emerging Countries

Many investors view crypto assets as a means to quickly make money. This is not entirely wrong, as they have created new wealth. But the Ethereum founder believes they should have a broader vision. According to his statements, cryptocurrencies have so much to offer.

He argues that humans should have fair access to money, and what better way to achieve this than with digital assets? The entrepreneur claims that emerging countries would benefit from using these assets, which would help boost their economies. However, developers should make things easier on their end.

Furthermore, the crypto market would take a huge step forward by breaking away from crypto exchanges like Binance, which are under the thumb of regulatory authorities such as the SEC. This is the only condition for crypto to become useful and spread freely around the world. However, CBDCs with their misguided direction could question it all.

Regulatory crackdowns in the United States have allowed crypto to expand into emerging countries. However, it is still subject to many restrictions, and the development of CBDCs is not helping. According to Vitalik Buterin, the latter is going in the wrong direction, and it is time to take action.