Four banks—Swiss National Bank, the Bank of Lithuania, the Bank of England, and the Bank of Canada took the podium to answer the question “Can cryptocurrencies spell the end of fiat currencies?”
A couple of executives cited a very high and accelerating inflation, and when a currency “is not performing well” could be a situation when cryptocurrency could pose a threat to fiat.
Switzerland has been known to be a good place for the crypto companies to do business where cryptocurrency is already widely accepted and has a reasonable approach to Initial Coin Offerings (ICO).
Bank of Lithuania’s Dr. Marius Jurgilis explained that the central bank’s primary commodity is “a matter of trust” and that a cryptocurrency is completely different from a central bank-issued cryptocurrency.
“If our product is good, we don’t need to talk about the cryptocurrencies. It’s a matter of trust […] but if the society starts questioning, or it if it thinks that the things we are selling could be got in a cheaper, more convenient way, other things will appear.”