Private Firms Shouldn't Launch Digital Currencies, Microsoft President Says

Microsoft’s president has hit out at private companies that are looking to launch their own digital currencies — arguing that this should be left to governments and central banks.

In criticism that could be interpreted as a swipe against Facebook, which is continuing to work on its Diem cryptocurrency, Brad Smith said he is “not a big fan” of tech giants like Microsoft being encouraged to get involved in issuing currency.

Speaking to an online conference hosted by the Bank of International Settlements, he said:

“The money supply almost uniquely needs to be managed by an entity that is responsible to the public and thinks really only about the public interest, and that means governments.”

And firmly ruling out any prospect of Microsoft jumping on the bandwagon, Smith added:

“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."

CBDC Debate Rages On

Facebook has received fierce criticism for its plans over Diem, formerly known as Libra, with regulators concerned that it could undermine fiat currencies and destabilize the global economy. Although the social network has made sweeping changes to its plans in response to this criticism, many central banks remain vocal critics of the project.

Writing in a local newspaper, the ECB has attempted to assuage these fears — promising a digital euro won’t replace physical banknotes.

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