Shalini Nagarajan

Civil servants and government employees living in Changshu, a city in East China’s Jiangsu province, will reportedly be paid in the country’s central bank digital currency (CBDC) from June onwards.



Professionals in school teaching, medicine, technicians and journalists will be among those paid under the new system, South China Morning Post reported, citing an affiliate of China’s official state news agency.



China is one of the first developed countries to experiment with fully-fledged CBDC. CBDCs differ from typical cryptocurrencies like bitcoin (<a href="https://blockworks.co/price/btc" target="_blank" rel="noreferrer noopener">BTC</a>) and ether (<a href="https://blockworks.co/price/eth" target="_blank" rel="noreferrer noopener">ETH</a>). They&#8217;re issued and maintained entirely by governments or central banks, rather than decentralized networks of nodes and validators. 



While many CBDCs rely on some form of distributed ledger technology, they can also be deployed to non-blockchain systems.



The concept wouldn’t be entirely new to Changshu. Since June 2022, some 4,900 enterprise employees there were <a href="https://www.scmp.com/news/china/politics/article/3217996/chinese-city-changshu-plans-pay-employees-using-digital-yuan" target="_blank" rel="noreferrer noopener">reportedly</a> paid a total of 2.5 million yuan ($363,000) for working additional hours.



Changshu also uses digital yuan as a mode of payment for transportation of government employees and housing expenses, among other things.



The city&#8217;s adoption of the system aligns with the CBDC pilot program announced by Jiangsu’s provincial government in February. However, it isn’t clear whether it’s enforced in other areas just yet.



China has been developing use-cases for CBDCs <a href="https://blockworks.co/news/analysis-what-exactly-is-chinas-cbdc" target="_blank" rel="noreferrer noopener">over the past few years</a>. US lawmakers, pundits and <a href="https://blockworks.co/news/fed-cbdc-robert-kennedy-fednow" target="_blank" rel="noreferrer noopener">presidential hopefuls have brought up</a> the topic several times, but there have been no specifics on the issuance or trial of such a currency.



Still, the adoption rate of the digital yuan among Chinese citizens hasn’t exactly been phenomenal. People still reportedly seem to prefer China’s popular digital payment platforms, WeChat and AliPay, which are both widely used for services such as online shopping, utility bills and transport.



China’s CBDC is one of about a dozen such projects formally in pilot phase, per <a href="https://cbdctracker.org/" target="_blank" rel="noreferrer noopener">CBDCTracker.org</a>. India <a href="https://timesofindia.indiatimes.com/business/india-business/rbis-retail-pilot-of-the-digital-rupee-goes-live-in-indias-4-metro-cities/articleshow/99317948.cms" target="_blank" rel="noreferrer noopener">launched</a> a retail pilot of its digital rupee across four cities earlier this month, while fully live CBDC projects include the Bahamas’ Sand Dollar and Jamaica’s JAM-DEX.



Some have <a href="https://hir.harvard.edu/digital-dynasties-how-chinas-cryptocurrency-could-unseat-the-dollar/" target="_blank" rel="noreferrer noopener">suggested</a> China’s digital yuan is part of ongoing efforts to diminish reliance on the US dollar-dominated financial system.&nbsp;



However, critics say the government is attempting to <a href="https://blockworks.co/news/experts-chinas-cbdc-is-all-about-finance-control" target="_blank" rel="noreferrer noopener">assert control over citizens’ payments</a>, which would come entirely under government surveillance. 



China counted its CBDC in its <a href="https://blockworks.co/news/china-cbdc-monetary-supply" target="_blank" rel="noreferrer noopener">official monetary base</a> supply for the first time earlier this year.



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CBDC

Chinese City To Pay Government Staff in CBDC

Jocelyn Yang

<div id="highlights-block_62b0ea456e0f3" class="highlights">
 <ul>
 <li>The institution said the future monetary system should be built on the trusted division of roles between the central bank and private sector entities</li>
 <li>In another bulletin issued in June, BIS economists said “decentralization proves to be an illusion”</li>
 </ul>
 
</div>



As <a href="https://cms.blockworks.co/how-cryptoasset-markets-have-changed-since-terra-crash/" target="_blank" rel="noreferrer noopener">Terra’s stablecoin implosion</a> and recent <a href="https://cms.blockworks.co/crypto-total-market-capitalization-under-1t-after-10-fall/" target="_blank" rel="noreferrer noopener">market turmoil</a> have demonstrated crypto&#8217;s volatility, central bank digital currencies, or CBDCs, offer a more stable solution for a future monetary system, according to the Bank of International Settlements (BIS).&nbsp;



Crypto’s security risks, high fees and scalability issues, as well as its “unregulated intermediaries that pose financial risks,” are growing concerns in today’s monetary system, BIS said in its annual report, released Tuesday.



“The crypto universe lacks a nominal anchor, which it tries to import, imperfectly, through stablecoins,” the report said. “​​These structural shortcomings are unlikely to be amenable to technical fixes alone. This is because they reflect the inherent limitations of a [decentralized] system built on permissionless blockchains.”&nbsp;



“The crypto sector provides a glimpse of promising technological possibilities, but it cannot [fulfill] all the high-level goals of a digital monetary system,” it added.&nbsp;



BIS argues that a future monetary system should contain both the “retail CBDC level” — which is predominantly used by individuals to pay each other or businesses — and “the wholesale CBDC level” — which is used by financial institutions to settle trades in markets.



The monetary system should be built on the division of roles between the central bank and private sector entities, the institution said in its report.



“The metaphor for the future monetary system is that of a tree, whose solid trunk is the central bank,” Hyun Song Shin, BIS’ economic adviser and head of research, said in a statement. “This tree boasts a rich and vibrant ecosystem of private sector service providers serving users to [fulfill] their economic needs. The ecosystem is rooted, figuratively speaking, in settlement on the central bank’s balance sheet.”&nbsp;



Earlier this month, Israel&#8217;s central bank announced a partnership with the Hong Kong Monetary Authority and BIS’ Innovation Hub to test the feasibility of a retail CBDC, <a href="https://www.reuters.com/markets/currencies/bank-israel-bis-hong-kong-cenbank-test-retail-cbdc-feasibility-2022-06-16/" target="_blank" rel="noreferrer noopener">Reuters</a> reported.&nbsp;



China <a href="https://cms.blockworks.co/china-debuts-digital-yuan-at-winter-olympics-amid-warnings-from-us-senator/" target="_blank" rel="noreferrer noopener">rolled out</a> the pilot for its own CBDC, or eCNY, at the Beijing Winter Olympics in February this year, and Jamaica’s Jam-Dex earlier this month became the world’s first CBDC to be recognized as <a href="https://cms.blockworks.co/in-historic-move-jamaica-makes-cbdc-akin-to-cash/" target="_blank" rel="noreferrer noopener">legal tender</a> — it will officially launch for public use later this month. Several countries, including <a href="https://cms.blockworks.co/kenya-seeks-public-opinion-on-potential-cbdc/" target="_blank" rel="noreferrer noopener">Kenya</a>, Brazil and Haiti, are also <a href="https://cms.blockworks.co/why-emerging-markets-are-leading-the-charge-on-cbdcs/" target="_blank" rel="noreferrer noopener">exploring</a> the technology.



“This architecture is assumed to have several benefits: less financial risk for the customer, more liquidity, lower costs, increased competition, and wider access,” the Bank of Israel said.



The BIS said retail CBDCs could play a similarly beneficial role in developing fast payment systems, citing the technical feasibility of a CBDC architecture — also known as <a href="https://news.mit.edu/2022/digital-currency-fed-boston-0203" target="_blank" rel="noreferrer noopener">Project Hamilton</a> — that can process 1.7 million transactions per second, which is “far more than major card networks or blockchains,” according to the report.&nbsp;



“These new capabilities not only permit the expansion of the types of transactions, but also enable transactions between a much wider range of financial intermediaries — not just commercial banks. Wholesale CBDCs also work together across borders, through multi-CBDC arrangements involving multiple central banks and currencies,” the report said.&nbsp;



In another bulletin issued in June, BIS economists said “decentralization proves to be an illusion” and <a href="https://cms.blockworks.co/decentralization-proves-to-be-an-illusion-bis-says/" target="_blank" rel="noreferrer noopener">suggested</a> decentralized lending systems would “gravitate towards greater centralization.”



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CBDCs the Core of Future Monetary System: BIS Report

Casey Wagner

<div id="highlights-block_62a3a31b85428" class="highlights">
 <ul>
 <li>IMF report suggests countries, crypto infrastructure providers move away from proof-of-work-based CBDCs</li>
 <li>CBDCs should be better for the environment than existing systems, analysts said</li>
 </ul>
 
</div>



A new study from the International Monetary Fund urges countries looking to develop CBDCs to consider energy consumption when making their design choices.



Central banks should “design CBDCs [central bank digital currencies] with the explicit goal to be environmentally friendly,” the IMF said in the <a href="https://www.imf.org/en/Publications/fintech-notes/Issues/2022/06/07/Digital-Currencies-and-Energy-Consumption-517866" target="_blank" rel="noreferrer noopener">report</a>. The payments system broadly, including central banks’ legacy systems, uses a large amount of energy, and moving toward renewables across the entire financial sector should be the goal, IMF analysts added.&nbsp;



“What we are seeing now is a broader realization that if CBDC is going to be an infrastructure, it has to be better than the one we have,” Carmelle Cadet, CEO of CBDC infrastructure provider EMTECH, said. “In addition to processing payments faster, with easier traceability and trust, CBDC has to be energy efficient.”&nbsp;



“Major cloud service providers are shifting toward renewable sources of energy such as geothermal and hydropower, as well as toward locations with colder climates, to reduce the carbon footprint in generating power,” the report read. “Adding the environmental footprint as a selection criterion of a cloud partner can benefit not only the CBDC project, but also any future digitization project of a central bank.”&nbsp;



The IMF also recommends that countries and crypto companies move away from energy-intensive proof-of-work protocols, a suggestion some say could impact user experience.&nbsp;



“Different protocols focus on various priorities…you have trade-offs that might not align to energy efficiency,” Cadet said.



The report comes as more nations, particularly developing countries, make strides toward launching their own CBDCs, which advocates say can drastically improve the lives of those living in predominantly cash-driven societies.&nbsp;



“Providing a cash-like digital means of payment, in light of reduced cash usage and an increase in private digital payment services, is the most common consideration [for developing a CBDC],” a recent report from the <a href="https://www.bis.org/publ/bppdf/bispap123.htm" target="_blank" rel="noreferrer noopener">Bank for International Settlements</a> said. “Other significant considerations include strengthening competition among payment service providers (PSPs), increasing efficiency and reducing the costs of financial services.”&nbsp;



Jamaica <a href="https://cms.blockworks.co/in-historic-move-jamaica-makes-cbdc-akin-to-cash/" target="_blank" rel="noreferrer noopener">has already approved</a> its upcoming CBDC as legal tender in the nation. Brazil, Nigeria and Haiti are among the jurisdictions exploring the establishment or expansion of CBDCs. The Central Bank of the Bahamas’ Sand Dollar became the world’s first CBDC in 2020.



With environmental, social and governance-focused investing and climate change at the front of many minds, it is not a surprise that the IMF is choosing to focus on how digital assets impact the environment, according to another CBDC expert.&nbsp;



“Central banks are thinking about energy, and they should be thinking about energy,” said Jonathan Dharmapalan, CEO of eCurrency, which provides technology for central banks to issue and distribute CBDCs. “Energy efficiency is not just about how to do this with digital currency, it is also about the lack of energy efficiency and moving physical currency, which is also an issue.”



Correction: An earlier version of this story featured an image of Christine Lagarde, who was the Managing Director of the IMF until 2019 when she became the President of the European Central Bank.



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Consider the Environment When Designing CBDCs, IMF Urges

Ben Strack

<div id="highlights-block_6245bcca4f9c0" class="highlights">
 <ul>
 <li>A direct-to-consumer CBDC could be used as a “financial surveillance tool” by the federal government, according to Cruz</li>
 <li>Rep. Tom Emmer, R-Minn., introduced a House bill proposing the same objective in January</li>
 </ul>
 
</div>



Sen. Ted Cruz has proposed a bill echoing one introduced in the House in January, in an attempt to maintain the dollar’s dominance without competing with the private sector.



The latest <a href="https://www.cruz.senate.gov/imo/media/doc/cbdc.pdf" target="_blank" rel="noreferrer noopener">planned legislation</a>, introduced by the Republican senator from Texas, would prohibit the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals.



A direct-to-consumer CBDC could be used as a “financial surveillance tool” by the federal government, similar to what is happening in China, according to Cruz.



“The federal government has the ability to encourage and nurture innovation in the cryptocurrency space, or to completely devastate it,” Cruz said in a statement.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“This bill goes a long way in making sure big government doesn’t attempt to centralize and control cryptocurrency so that it can continue to thrive and prosper in the United States.”</blockquote>



CBDCs differ from decentralized currencies such as bitcoin, as they are issued and backed by a government and transact on a centralized permissioned blockchain.&nbsp;



President Joe Biden signed an executive order earlier this month that calls on a variety of government agencies to study the “responsible development” of digital assets. It also mentions “placing urgency” on the research and potential development of an American CBDC.



Industry watchers <a href="https://cms.blockworks.co/bidens-crypto-executive-order-may-be-watershed-moment-despite-lack-of-specifics/" target="_blank" rel="noreferrer noopener">previously told Blockworks</a> that though the order is an important step in the policymaking process, concrete legislation could take years.



Rep. Tom Emmer, R-Minn., <a href="https://cms.blockworks.co/us-rep-tom-emmer-proposes-bill-to-shape-cbdc-plans/" target="_blank" rel="noreferrer noopener">introduced a House bill</a> that would prevent the Fed from issuing a CBDC to individuals in January.



The Federal Reserve <a href="https://cms.blockworks.co/fed-opens-debate-on-cbdc-takes-no-policy-stance/" target="_blank" rel="noreferrer noopener">issued a report</a> that month that expressed potential interest in a CBDC that is “identity-verified” but did not take any policy stance. The agency is soliciting public comments through May 20.



“I’m glad Senator Cruz has agreed to offer a Senate companion to my legislation limiting the Fed’s authorities,” Emmer said in a statement. “The Fed must only craft a CBDC framework that is open, permissionless and private — meaning any digital dollar must be accessible to all, transact on a blockchain that is transparent to all and maintain the privacy elements of cash.”



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Ted Cruz’s Senate Bill on CBDCs Replicates January House Proposal

Sebastian Sinclair

<div id="highlights-block_6205fbaa84437" class="highlights">
 <ul>
 <li>Kenya&#8217;s central bank is requesting public feedback on the applicability of a potential digital Kenyan shilling</li>
 <li>The bank said CBDCs were receiving &#8220;more attention than ever before&#8221;</li>
 </ul>
 
</div>



The Central Bank of Kenya (CBK) is seeking feedback from the public on the applicability of a potential central bank digital currency (CBDC), according to a <a href="https://www.centralbank.go.ke/uploads/press_releases/1985544394_Press%20Release%20-%20Issuance%20of%20Discussion%20Paper%20on%20on%20Central%20Bank%20Digital%20Currency%20for%20Public%20Comments.pdf" target="_blank" rel="noreferrer noopener">press release</a> on Friday.



CBK has issued its <a href="https://www.centralbank.go.ke/uploads/discussion_papers/CentralBankDigitalCurrency.pdf" target="_blank" rel="noreferrer noopener">discussion paper</a> outlining the possible variations of a digital Kenyan shilling as well as the feasibility and risks involved. The paper also examined other payment types including stablecoins and electronic money.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">&#8220;It is quite apparent that CBDCs are receiving more attention than ever before,&#8221; the bank said in its release. &#8220;However, a key point to note is that despite the traction in attention, the motivations for the issuance of CBDCs vary across countries, as do the policy approaches and technical designs.&#8221;</blockquote>



It said the benefit of a Kenyan CBDC remains unclear and further research on the specific design was needed to shore up confidence in the country&#8217;s domestic markets before it would consider developing a digital form of the nation&#8217;s currency built atop blockchain tech.



&#8220;Naturally, the balance of risks and benefits of CBDCs will vary from one economy to another,&#8221; the bank said.



Consideration of public opinion follows the bank&#8217;s governor, Patrick Njoroge, last year reiterating <a href="https://www.centralbank.go.ke/images/docs/media/Public_Notice_on_virtual_currencies_such_as_Bitcoin.pdf" target="_blank" rel="noreferrer noopener">CBK&#8217;s stance</a> that crypto, such as bitcoin, are not legal tender and are unregulated. The bank initially urged Kenyans to &#8220;desist from transacting&#8221; via the nascent asset back in 2015.



&#8220;To comprehensively evaluate the potential applicability of CBDC in Kenya, CBK requests for public comments on a number of questions,&#8221; the bank said. It is seeking feedback no later than May 2022.



Kenya currently ranks 5th in the 2021 <a href="https://blog.chainalysis.com/reports/2021-global-crypto-adoption-index/" target="_blank" rel="noreferrer noopener">Global Crypto Adoption Index</a>, according to Chainalysis research. Meanwhile, around 87 countries, representing&nbsp;over 90%&nbsp;of global GDP, are currently in the exploration phase of CBDCs.



A further nine countries have launched their own form of CBDC. Nigeria became the latest country to launch its digital naira, the first outside the Caribbean nations, according to research by <a href="https://www.atlanticcouncil.org/cbdctracker/" target="_blank" rel="noreferrer noopener">Atlantic Council</a>.



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cbdcs

Kenya Seeks Public Opinion on Potential CBDC

Sam Reynolds

<div id="highlights-block_619e37a3f1635" class="highlights">
 <ul>
 <li>India’s crypto ban is about ensuring that digital assets aren’t used for payments, thereby dodging taxes, and to allow for digital assets to be regulated via the Securities and Exchange Board of India</li>
 <li>The bill also provides means for the Reserve Bank of India to create a Central Bank Digital Currency</li>
 </ul>
 
</div>



Recent legislative proposals by India’s government are not seeking to ban cryptocurrency outright, but rather create a legislative framework to regulate it as a security while prohibiting it as a payment method and instead promoting an Indian Central Bank Digital Currency (<a href="https://cms.blockworks.co/?s=cbdc" target="_blank" rel="noreferrer noopener">CBDC</a>).



The bill, <a href="http://loksabhadocs.nic.in/bull2mk/2021/23.11.21.pdf" target="_blank" rel="noreferrer noopener">titled</a> the “Cryptocurrency &amp; Regulation of Official Digital Currency Bill 2021” is identical to one proposed in Parliament last year in New Delhi.  



“This bill actually facilitates the allocation of a budget for the creation of a fiat cryptocurrency called the digital Rupee and creates the infrastructure required for mass adoption and usage in the country just like China,” Harsh Rajat, Founder of the Ethereum Push Notification Service, explained to Blockworks.



<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">“However, no blanket ban is proposed on other currencies. The RBI wants the digital Rupee to have a significant place in the Indian economy.”</blockquote>



One difference between this year and last year is that lawmakers know a lot more about crypto, Nischal Shetty, CEO of WazirX, an Indian crypto exchange, tweeted.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">-Don&#39;t believe there will be a blanket ban on crypto -Clarity on classification of crypto is important -Lawmakers understand crypto much better now vs a year ago Nischal Shetty, WazirX on CNBC-TV18&mdash; db (@tier10k) <a href="https://twitter.com/tier10k/status/1463467390205927424?ref_src=twsrc%5Etfw">November 24, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Mikkel Morch, a director at digital assets hedge fund ARK36 said in an emailed statement that “an outright ban on such investments might be difficult to implement as the digital asset ecosystem in India extends far beyond cryptocurrencies and includes other investable assets such as NFTs which are becoming increasingly popular in India.”



In a tweet thread, Sino Global Capital pointed out that the law is vague and ambiguous, so it is not quite clear what is meant by “private cryptocurrency” — which would be banned under one interpretation of the bill. &nbsp;&nbsp;



“There is no clear definition as to what private cryptocurrencies are. The bill will need to define the same. It can mean any one of the 3 or a totally new definition,” Sino Global tweeted.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">This final interpretation is highly unlikely considering that the Govt understands that the retail investors have invested close to $6.6 billion in the sector. The industry also directly and indirectly employs 50k people. The Govt understands the international regulatory..&mdash; Sino Global Capital (@SinoGlobalCap) <a href="https://twitter.com/SinoGlobalCap/status/1463195096493350912?ref_src=twsrc%5Etfw">November 23, 2021</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



The fund doesn’t think that it means all blockchain-based digital assets, aside from the one created by the government of India.&nbsp;



That interpretation is “highly unlikely considering that the Govt understands that the retail investors have invested close to $6.6 billion in the sector. The industry also directly and indirectly employs 50,000 people,” they tweeted.&nbsp;



But, the contents of the bill are also subject to change throughout the legislative parliament based upon input from the parliamentary committee consisting of members of the opposition parties.&nbsp;



“It is also important to note that this is what the government thinks should be the law and is in no means the final shape of the law. It has to be debated and passed by the parliament to become law,” they concluded.



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India Crypto Ban About Payments, Not the Asset Class

Jacquelyn Melinek

<div id="highlights-block_60ef0d6d86b9a" class="highlights">
 
</div>


<div id="highlights-block_60ef0d8786b9b" class="highlights">
 <ul>
 <li>Prior to the investigation phase, ECB conducted experiments over the past nine months and found no “technical obstacles identified” </li>
 <li>Skeptics say that digital fiat currencies still have problems with unlimited supply and lack of transparency </li>
 </ul>
 
</div>



The European Central Bank’s Governing Council launched its investigation phase of a digital euro today, it said in a statement.&nbsp;



The investigation phase will last 24 months and will focus on addressing “key issues regarding design and distribution” of a digital euro, it said.&nbsp;&nbsp;



The digital euro, which would be categorized as a Central Bank Digital Currency, would have to help prevent illicit activities and avoid any “undesirable impact on financial stability and monetary policy.” The <a href="https://www.ecb.europa.eu/press/pr/date/2021/html/ecb.pr210714~d99198ea23.en.html">project</a> won’t be predetermining any decisions on a possible issuance of a digital euro and “in any event, a digital euro would complement cash, not replace it,” the statement said.&nbsp;



“Different from the crypto movement, fiat currencies, whether they are digital or paper, are still fiat currencies with all the problems of unlimited supply and lack of transparency,” said Permission.io CEO Charlie Silver in an interview with Blockworks.  



The project will focus on a possible design to fit users’ needs. It will look into the functionality and usage that a digital euro would have in regards to being a riskless, accessible, and efficient form of digital central bank money. Additionally, the project will assess the possible impact of a digital euro on the market.&nbsp;



“Our work aims to ensure that in the digital age citizens and firms continue to have access to the safest form of money, central bank money,” said ECB President Christine Lagarde. 



In June, the ECB said that central banks that chose not to establish official digital currencies are risking losing autonomy and control over their financial systems, Blockworks previously <a href="https://cms.blockworks.co/ecb-central-banks-will-lose-control-without-a-digital-currency/">reported</a>.



“Issuing a central bank digital currency would help to maintain the autonomy of domestic payment systems and the international use of a currency in a digital world,” the ECB said in a <a href="https://www.ecb.europa.eu/pub/ire/html/ecb.ire202106~a058f84c61.en.html#toc18">report</a>.&nbsp;



Separately, ECB conducted experiments over the past nine months prior to the investigation phase and found no “technical obstacles identified.” It also noted that digital euro infrastructure would be environmentally friendly, based on the power usage “to run tens of thousands of transactions per second is negligible compared with the energy consumption of crypto-assets such as bitcoin.”



People and institutions that are critical of crypto-assets, like bitcoin, often point out how cryptocurrency harms the environment through energy usage, but <a href="https://www.cnbc.com/video/2021/04/26/ark-investments-analyst-says-76-percent-of-bitcoin-miners-are-using-renewable-energy.html">76% of bitcoin miners are using renewable energy</a>, Yassine Elmandjra, a blockchain and cryptoasset analyst at Cathy Wood’s Ark Investment Management, said in an interview with CNBC.&nbsp;



Bitcoin mining and its environmental impact have been a popular conversation in mainstream news as Tesla CEO Elon Musk has <a href="https://twitter.com/elonmusk/status/1392602041025843203?s=20">tweeted</a> about environmental concerns and countries like China have <a href="https://cms.blockworks.co/china-mining-exodus-seen-as-positive-for-bitcoin/">cracked down</a> on its country’s mining industry.



“All the major fiat currencies will be going digital in the coming years,” Silver said. “It makes sense for governments just on a practical logistic level.”

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