The former governor of the Reserve Bank of India and former chief economist of the International Monetary Fund, Raghuram Rajan, said Thursday (20th August) he sees Bitcoin and central bank digital currencies (CBDCs) working alongside each other, according to CNBC.
Rajan, currently a finance professor at the University of Chicago, is known for predicting the 2008 recession in 2007 and spearheading India’s economic recovery in the past decade. His long-term outlook for Bitcoin is positive, if not as a replacement of fiat currencies.
“Bitcoin is a little bit like gold. In fact, gold has some value because we value it for jewelry, but with Bitcoin you can’t even do that. Nevertheless, it has value because others think it has value” Rajan said.
Rajan sees BTC as a store of value: "BTC will mainly act as a store of value or a speculative asset rather than a medium of exchange while Libra will serve as a medium of transaction. Both could have different roles to play when central banks begin to issue digital currencies."
