Nouriel Roubini, a cryptocurrency critic and economist popularly known as ‘Dr. Doom’ is of the stance that cryptocurrency is not money and faces serious limitations in terms of its use, calling cryptocurrency, history's largest bubble.
‘Dr. Doom’ believes that thousands of cryptocurrencies face challenges when they are used as a unit for accounting. He pointed out how there is low speed on PoW (Proof of Work) networks, while ignoring the newer networks using PoS (Proof of Stake), which have potentially higher transactions.
Cryptocurrency / Internet Comparison
He also said that the cryptocurrency adoption is still low and should not be compared to the internet maiden period.
Nouriel Roubini said:
“Comparing crypto-currencies to the early days of the internet is nonsense. A decade since the launch of the WWW in 1991 there were over 1 billion users of the internet, not the approximate 70 million wallets of crypto most of them dormant,”
However, this criticism by Roubini missed out the fact that these so called ‘new’ networks were only just a few years old and moreover, in the first ten years of the arrival of Bitcoin it witnessed significant success and popularity.
Digital Assets Through Central Banks
Although Nouriel Roubini still sees a future for digital currency, he says that this will come through central banks. Central banks currently only use a digital ledger and customers are served through the commercial banks.
Roubini stated that a common digital currency will mean that customers will be served directly by the central banks.
He said :
“Insofar as CBDCs would crowd out worthless cryptocurrencies, they should be welcomed. Moreover, by transferring payments from private to central banks, a CBDC-based system would be a boon for financial inclusion. Millions of unbanked people would have access to a near-free, efficient payment system through their cell phones.”
He believes that financial technology development is key in displacing blockchain software and will cause a financial revolution in the next few years.
Roubini also stated his worries of cryptocurrency related platform’s vulnerability to hacks.