Vitalik Buterin: Central bank digital currencies will eventually be convertible into cryptocurrencies

National digital currencies (CBDCs) could in the future be easily exchanged for cryptocurrencies, Ethereum cofounder Vitalik Buterin said. He shared his expectations at the Fintech Festival 2020 in Singapore, Cointelegraph reports Cointelegraph

“It is important to understand how CBDCs will interact with digital currencies. I expect to see many opportunities for fair exchange between different kinds of assets and a move from one ecosystem to another,” said Buterin.

The Ethereum cofounder expressed optimism about developments in CBDCs, noting that they could bring potential benefits, including simplifying macroeconomics. At the same time, he is concerned about possible privacy issues.

During his remarks, Buterin also touched on blockchain use-case scenarios. He believes that as scalability issues improve, their number will continue to grow and they will more often find practical, real-world applications.

Earlier, the developers of the non-custodial exchange IDEX recently proposed that direct settlements for trades of assets across networks would be available in many, many years’ time.

Messari analysts expressed confidence in Ethereum’s strong position thanks to its community. They argue this will prevent competitors, which have built interoperable bridges to the network of the second-largest cryptocurrency by market capitalisation and are developing Ethereum Virtual Machine-compatible analogues, from succeeding.

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