12 (Xinhua) — Central banks do not need to issue digital currencies, Alan Greenspan, the former chairman of the Federal Reserve, said Tuesday. “They don’t have to do that, ” Mr Greenspan said at the 17th annual economic outlook meeting of China Financial Magazine.
He points out that national currencies are supported by sovereign credit, which other organizations cannot provide.
“America’s basic sovereign credit goes far beyond Facebook’s imagination,” Greenspan said. “
The social giant caused a stir earlier this year when it announced plans for a cryptocurrency project called Libra. The project has important partnerships with the world’s leading payment processing companies.
Last month, however, Visa, MasterCard, PayPal, Stripe and eBay said they would pull out of the Libra cryptocurrency program as the US government stepped up scrutiny.
Patrick Harker, chairman of the Federal Reserve Bank of Philadelphia, reportedly said in early October that central banks, including the Federal Reserve, would “inevitably” issue digital currencies.
Bitcoin’s price soared to nearly $20,000 in 2017, and the digital currency caught the world’s attention. Many enthusiasts of Bitcoin’s underlying technology say the advantage of Bitcoin is its decentralized system, which is inconsistent with the central control of the agency.