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Romania’s Central Bank Says Role of Currency Can’t be Matched by Crypto

One Romanian Central Bank official stated on the country’s local media that cryptocurrency cannot replace currencies issues by banks. This is because crypto is not a currency.

According to Daniel Daianu, a member of the Administration Council of the Romanian National Bank (BNR), awareness about the differences between the institutions and their parts are vital to ensure that those roles won’t disappear. He also stressed how crucial it is to make a distinction between cryptocurrencies and blockchain technology.

Daianu said that he believes digital currencies will never “fulfill the basic roles of currency” issues by central banks. He did say though that it’s possible for these banks to have a digital currency, and that commercial banks can receive cryptocurrency that can grow. He also agreed that new technologies “lead to disintermediation and this feature of decentralization shows us the merits of networks.”

Last July, Romania released a copy of an Emergency Ordinance that monitors how electronic money is issued. The country is known as being the first Easter European affiliate of the Bitcoin Foundation in 2014.

The draft allegedly described e-money as basically “monetary value stored electronically.” It represents a claim on the issuer’s receipt for the sole purpose of conducting payment transactions that are received by a person that’s not the issuer of the electronic money.

A new report released by the WEF, or World Economic Forum, showed that about 40 central banks around the world are research and pilot projects involving blockchain technology with the goal of addressing issues like cybersecurity, financial inclusion, and efficiency of payments.

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