LETTER: Cryptos no threat

Glenn Lawrence’s article attempts to make a credible case for cryptos amid what he calls “bad press and misguided views” (“A credible case for cryptocurrencies amid the bad press”, April 4).

In his view the real fear of “crypto-haters” is that cryptos will eventually make commercial and central banks redundant. I hold no brief for commercial banks, many of which seem to have become sufficiently innovative and adaptable to survive. However, what is misguided is the notion being promoted by the crypto movement that the current crop of cryptos are capable of replacing currencies regulated by central banks.

The built-in limit of 21-million for the number of bitcoin in issue disqualifies it as a useful currency. As for the rest, we now probably have at least 40 “cryptocurrencies” for every country on this planet, with no control over supply. What are now called cryptocurrencies are in fact nothing other than cryptotokens.

On the positive side, the emergence of cryptos has prompted many central banks to begin to appreciate the possibilities and benefits of digital currencies. Once a crypto dollar, crypto pound, crypto euro and perhaps even crypto rand appear, the crypto movement as we know it will only be remembered as a fascinating project that enriched many people at the expense of many more.

Blignault Gouws
Waterkloof

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