Daniel Daianu — Crypto Can’t Substitute Bank Currency

Wilfred Michael 

Wilfred Michael

News reporter

17 April 2019,
Daniel Daianu — Crypto Can’t Substitute Bank Currency

While many crypto industry participants look forward to a time when cryptocurrencies will replace fiat currencies, Daniel Daianu, a member of the Romanian National Bank (BNR) Administration Council thinks otherwise.

According to a local news outlet, Business Review, Daniel Daianu shared his thoughts about cryptocurrencies during a conference on Tuesday, April 16. The bank official first noted that there is a clear distinction between blockchain and cryptocurrencies.

Preferring to speak about cryptocurrencies, he mentioned that it would be better off to refer to them as financial assets since they “won’t be able to fulfill the basic roles of currency.”

One of the primary role of currency that he stressed is that there is a last resort lender, which is usually the State. He further cited an example of when the State saved the banking system by issuing base currency and introducing non-conventional measures.

Regarding that time Daianu said, “it wasn’t crypto banks that were saved.”

In his opinion, the only acceptable scenario given the emergence of new technology is for “central banks to have a digital currency” while “commercial banks receive digital currency that can multiply.”

Although he didn’t explain how such a digital currency would work, he praised the fact that new technology has made decentralization possible.

"I do agree, however, that new technologies lead to disintermediation and this feature of decentralization shows us the merits of networks,” Daianu said conclusively.

In recent times, Daianu is only one of the top ranking bank officials to share his thoughts on cryptocurrencies and the possibility of a bank issuing one. Last month, Agustin Carstens, the general manager of the Bank of International Settlements (BIS) warned central banks against issuing digital currencies.

Stmarket.co also reported earlier this month that Pakistan’s digitization plan includes the creation of a new cryptocurrency by 2025.

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