While the financial system is currently strained, the controversy surrounding crypto-currencies is fueling yet the discussions. Murilo Portugal, the president of the Federation bank of Brazil, shares his opinion on the digital assets on the grounds that they are not of the currency.
Taking advantage of a debate on the impact of the digital revolution on the financial system, Portugal has been argued that crypto-currencies are far from fulfilling the duties traditionally assigned to the currency, whether by definition in reality.
“They are called chips but they are not parts, that is why it is of crypto-currency. They do not meet any of the classic functions of money as a unit of account, where people can express prices. They are not being used as a means of payment or store of value because the volatility is very high “, he explained.
These assertions are in line with suggestions put forward by the Open Money Initiative, where it meant that even in Venezuela, where hyperinflation is endemic, the bitcoin is not considered a reserve of value in its classical sense, but only as a currency vehicle, that is to say, the most appropriate way to transfer value out of the country.
Some people are not of the same opinion
Even if the claims of Portugal are quite relevant, many are those that support the ability of Bitcoin to serve the role of currency.
Last month, several articles touting the merits of Bitcoin as a currency, like Coinbase, who stressed in his blog that the Bitcoin is a strong competitor to gold as a store of value.
During an interview, the associate director of the application of crypto-bank, Nexo, told about the potentials which abound in the Bitcoin to store it in the same basket as the classic currency :
“Bitcoin presents five of the six characteristics of money, namely the durability, portability, divisibility, uniformity, and the limited offer while it still fails on the sixth, which is the general acceptability as a method of payment. ”
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