In a recent webinar, 2007 Nobel Laureate for economics, Harvard Professor Eric Maskin outlined why he sees central bank digital currencies (CBDC) as likely to displace cryptocurrencies. In a high quality webinar with Luohan Academy (initiated by Alibaba), the economist also expressed optimism about the positive impact of blockchain on economic growth because it will broaden market access.
Maskin believes central banks’ role in managing monetary policy is critical and that their actions in 2008 prevented a repeat of the 1930s depression. And the primary function of commercial banks is to make loans.
He outlined potential alternatives to banks providing loans. One is crowdfunding, but the problem is too many bad ideas get funded and banks probably do a better job. Instead, it’s conceivable that new institutions might develop to play that role.
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