Eswar Prasad, Professor of Economics at Cornell University, who gave an interview on CNBC channel, expressed his views on cryptocurrencies, blockchain technology, decentralized finance (DeFi) and central bank digital currencies, especially the leading cryptocurrency bitcoin.
Eswar Prasad, who also served at the International Monetary Fund (IMF) in the past, stated that blockchain technology will play a fundamental role in the transformation of finance.
“The promise of decentralized finance developed on the infrastructure of blockchain technology is real. However, Bitcoin itself may not last that long.”
Prasad did not speak very optimistically about Bitcoin, but he gave his due, but claimed that there are crypto money projects that use Blockchain technology better than BTC.
"Bitcoin's use of blockchain technology is not very efficient. BTC is not a highly scalable network either. It also has a nature-destroying validator mechanism."
“You may not like Bitcoin. However, it did start a revolution that could ultimately benefit us all, directly or indirectly.”
Professor Prasad said that central bank digital currencies (CBDC) are important to offer a low-cost payment option that is accessible to everyone. Saying that CBDCs will increase financial participation, Prasad stated that these digital currencies can provide benefits in many areas.