New Zealand Central Banker Asserts: Bitcoin is Neither a Substitute nor a Complement to Fiat
New Zealand Central Banker Asserts: Bitcoin is Neither a Substitute nor a Complement to Fiat
Adrian Orr, the governor of the Reserve Bank of New Zealand, seems skeptical about independent digital currencies, including bitcoin and stablecoins.
According to Orr, bitcoin does not fulfill the functions of a medium of exchange, store of value, or unit of account, despite attempts by some to use it as such. He emphasized that bitcoin serves other purposes but is not a substitute for, or even a complement to, central bank money.
Regarding stablecoins, Orr expressed criticism, referring to them as “the biggest misnomers such as hedge funds” and “oxymorons.” He pointed out that stablecoins are not truly stable and are only as reliable as the balance sheet of the entity backing them.
Orr’s comments came in response to a question about central banks’ concerns regarding independent digital currencies compared to central bank fiat currencies and their potential impact on the international financial system. He stated that central banks are indeed deeply concerned, particularly because the advertised features of these alternative currencies often do not match the reality.
