Microsoft’s chairman says FinTech companies should leave the issuing of currencies to central banks

Brad Smith, president of Microsoft Corporation, says financial technology companies don’t need to spend private digital currency.

According to Bloomberg Smith made the remarks during his speech at an online conference organized by the Bank for International Settlements. As part of his speech, Smith argued that The money supply should be under the auspices of governments and central banks only.

Smith said it is important that only companies that protect the common good can control financial transactions, adding: “I’m not very much for encouraging us to ask or wanting [las empresas tecnológicas] Let’s take part in the issuing of currencies. “

Microsoft’s chairman says FinTech companies should leave the issuing of currencies to central banks
Microsoft’s chairman says FinTech companies should leave the issuing of currencies to central banks

Smith’s comments likely set Microsoft against Facebook, how the social media giant participates in the Diem project.

In fact, Diem’s ​​launch in 2019, when the project was still called Libra, caused a stir with financial regulators. Various national agencies criticized the digital currency project, arguing that a private stablecoin project under the banner of Facebook could pose a significant risk to sovereign monetary policy.

Smith sided with the financial regulators, stating:

“I think the world has been better served by a centuries-old movement to put this in the hands of governments. We are not a bank and we do not want to become a bank and we do not want to compete with our customers. Who are banks?”

The attractiveness of digital currencies seems to have increased significantly in view of the current coronavirus pandemic and calls for a stronger introduction of digital payment systems.

To counter the perceived threats posed by private stablecoin projects like Diem, several central banks are developing their own national digital currencies.

Smith’s comments that financial technology companies Staying away from issuing coins is in line with the less positive attitudes of Microsoft leaders towards crypto in general.

The founder of Microsoft, Bill Gates once said that the underlying cryptocurrency technology is causing deaths in “fairly straightforward ways”. Since then, Gates has changed his mind too Bitcoin (BTC) go from negative to neutral.

In February, he ruled out the possibility of his company mimicking Tesla’s $ 1.5 billion investment in Bitcoin.

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