Launch of centralised digital currencies could kill decentralised crypto

A new report by the European Union claims that central bank digital currencies have the power to kill decentralised tokens as we know them now.

Results of the study show that the introduction of these centralised digital currencies could halt the progress of Bitcoin and other decentralised coins.

The study’s findings echo those from the Police Department for Economicm Scientific, and Quality of Life Policies (via CoinSpeaker), which similarly claims that the launch of digital currencies from central banks could dramtically reduce demand for decentralised tokens.

The report reads: “The arrival of permissioned cryptocurrencies promoted by banks, even by central banks, will reshape the current competition level in the cryptocurrency market, broadening the number of competitors.

“A potential inadequacy of traditional competition policy to address competition issues in the cryptocurrency markets can be found suggesting direct public participation through a central-bank digital currency as remedy.

“However, the market power of banks in traditional banking services might be used to limit competition in the cryptocurrency market through pre-emptive acquisitions or predatory pricing schemes,” it continued.