Microsoft president says FinTech firms have no business issuing currencies

Stablecoins

The folks at Microsoft sure aren’t too keen on cryptocurrencies. Microsoft cofounder Bill Gates may have updated his views on Bitcoin from negative to neutral, though he still is concerned about the energy costs.

And now Microsoft president Brad Smith has chimed in, saying that Fintech firms should leave currency to central banks, and not dab in the issuance of private stablecoins.

He made these remarks speaking at an online conference organized by the Bank for International Settlements, arguing that money supply should exclusively be under the aegis of governments and central banks.

Siding with financial regulators, Smith said:

“I think the world has been better served by what has been a movement over centuries to put that in the hands of governments. We’re not a bank and we don’t want to become a bank and we don’t want to compete with our customers who are banks.”

In his view, it is important that only entities that protect the common good should be left to control currency operations. Technology firms participating in the issuance of currency is taking things too far.

His comments likely put Microsoft in opposition to Facebook.

The social media giant being a participant in the Diem project. Previously called Libra, the news caused quite a stir among financial regulators back when it broke, with several agencies panning the digital currency project.

Regardless, the appeal surrounding virtual currencies seems to have gained significant momentum, and several central banks are developing their own sovereign digital currencies to counter the perceived threats by private stablecoin projects like Diem.


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