The chairman of the board of VTB bank Andrey Kostin said that despite the growth of bitcoin, it is doomed to failure, and Kostin called the cryptocurrency miners “counterfeiters”.
The chairman of the board of VTB said this during a discussion at an online conference on investments and modern banking trends. Despite bitcoin’s skyrocketing growth in recent months and its attempt to hold on to the $ 60,000 level, the future of bitcoin will not be so bright, Costin said. (Also Read: Russia postpones missile launch with 38 satellites)
According to him, any digital currencies, regardless of their rate and user confidence, are doomed to failure in the future. Governments and financial regulators will not allow any asset to exist without supervision, especially if such an asset is used to make payment transactions.
When it comes to mining bitcoin, Kostin compared this industry to the production of counterfeit coins, which no state would tolerate. However, VTB’s CEO sees great potential in central bank digital currencies. Many central banks have begun to study in detail the possibilities of launching their own stablecoin. (Must Read: Internet usage in Germany is increasing rapidly)
The People’s Bank of China (PBOC) has already tested the digital yuan several times in different cities. In addition, a hardware wallet test for the digital yuan was launched in China at the beginning of the year .
Kostin praised the experience of the Chinese authorities with regard to digital currency. Given that the modern world is becoming more digital, sooner or later all central banks will launch state digital currencies, added the chairman of the board of VTB.
“Many countries, including Russia, have embarked on the path of creating their own digital currencies, and they have a great future. This trend is inevitable, ”said Kostin. Last fall, the Bank of Russia began a public discussion of the digital ruble issue and possible scenarios for its use. VTB management supported this initiative, but on condition that settlements with the digital ruble will be carried out through the Central Bank of Russia.
However, in this case, there are concerns that the regulator will take over all banking functions, which will lead to an outflow of money from commercial banks.
Later, the chairman of the Bank of Russia Elvira Nabiullina said that the digital ruble would not affect interest rates on loans and deposits in Russia, and the banking sector would not suffer from a liquidity shortage.
Recently, Kostin expressed concern that overregulation of the Russian stock market could leave investors in bitcoin and other less transparent products.