The Brazilian Federation of Banks (Febraban) president Murilo Portugal argued that cryptocurrencies fail to fulfill the classic functions of a currency.
Speaking in a debate titled, “Impact of the Digital Revolution on the Financial System,” Portugal discussed potential disruptors in the financial industry, including fintech, blockchain and cryptocurrency.
Portugal argued that cryptocurrencies fail to comply with the three fundamental principles of currency: a unity of account, means of exchange and reserve of value.
He said,
Cryptocurrencies do not fulfill any of the classic functions of the currency.
He continued,
They are actually called coins but they are not coins, which is why it is cryptocurrency. They do not fulfill any of the classic functions of the currency, which is to serve as an account unit, where people can express prices. They do not serve as a means of payment or as a store of value because the volatility is very high.
The Febraban president explained the impact of the digital revolution on the economy, claiming that money and information are becoming equivalent. He speculated that data would be regulated in the future in a similar way as fiat.
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