Romanian Central Bank: Cryptocurrencies Will Not Replace Traditional Money
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April 17, 2019
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The local publication Business Review reported yesterday that an official from Romania's central bank has said cryptocurrencies will not replace cash just because digital coins are not real coins.

Daniel Daianu, a member of the Romanian National Bank (BNR)’s Administration Council, highlighted the need to distinguish between blockchain technology and cryptocurrencies:

"In my opinion, these are financial assets, not cryptocurrencies, and they won’t be able to fulfil the basic roles of currency. [...] Cryptocurrencies will never be able to substitute the currency issued by a central bank. What can happen is for central banks to have a digital currency, but that will also be issued by the bank."

Romania published in July a document regulating the issuance of electronic money in the country.

Even though Romania's central bank believes standard cryptocurrencies will never replace tradicional currencies, central banks from all over the world think that a special type of digital assets known as central bank digital currencies (CBDC) actually have some advantages, including a 24-hour availability, anonymity and the absence of double-credit risks for participants.

In this sense, several central banks are working on their own CBDC.

Why it is important

  • Two weeks ago, the World Economic Forum (WEF) revealed in a report that more than 40 central banks around the world are experiencing or considering the possibility of developing their own digital central bank currency (CBDC).
  • Sweden’s central bank, Riskbank, announced last year that a pilot program for the e-Krona, the bank's digital currency, would be rolled out this year.
  • The Bank of Spain also said in an official statement published in February that fiat money will not be replaced by cryptocurrencies since cryptocurrencies "are not a common" assets as fiat.
  • The reserve banks of Canada, Singapore and the United Kingdom believe that central bank digital currencies (CBDC) will help in overcoming problems in making international payments.

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