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Czech National Bank Board Member Criticizes CBDCs as “Helicopter Money”


www.cryptoglobe.com 25 July 2020 05:30, UTC
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A board member for the Czech National Bank has criticized the concept of central bank digital currencies (CBDCs) as being “helicopter money.”

According to an interview with Czech outlet 4H Productions, board member Tomas Holub is skeptical about the role CBDCs can play in the future of global finance. 

Holub called digital currencies an “attractive concept” in providing direct liquidity to client accounts, but had reservations about replacing the current fiat system. He labeled CBDCs as “helicopter money” and claimed there were many outstanding questions surrounding the nature of government-backed digital currencies. 

In particular, the Czech Bank board member highlighted whether digital currencies would provide user anonymity and what anti-money laundering standards would be applied. He also raised the question of whether CBDCs would be interest-bearing. 

Holub said the Czech Republic still had a high share of currency in circulation and was growing long-term, thwarting the possibility of a liquidity crisis and lessening the need for a CBDC. In addition, he criticized Czech law for its inability to empower the central bank to issue a digital currency. 

Featured Image Credit: Photo via Pixabay.com

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