Cryptocurrency prices are inflated by “monetary misconceptions” and conspiracy theories, while CBDCs are immune to volatility and can be trusted implicitly. This was stated by the head of the Central Bank of Finland, Olli Rehn.
He added that some have joked that a CBDC is a solution looking for a problem. At the University of California, Berkeley Olli Rehn said although he may not be an outright fan of CBDCs, he finds critics underestimate potential merits.
Rehn mentioned the potential risks of the transition to a more digital economy in the context of the growth of crypto markets over the past five years. The governor expressed the opinion that the high volatility of such assets is only partially due to the influence of monetary policy.
Central banks should be ready for the moment when it will be necessary to ensure convertibility to CBDC. We must remember that reliable and safe access to the money of the central bank is the basis of price and financial stability," he explained.