Microsoft President Says Fintech Firms Should Leave Digital Currencies to Governments

"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," said Brad Smith.

AccessTimeIconMar 24, 2021 at 7:54 p.m. UTC
Updated Sep 14, 2021 at 12:31 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Tech giant Microsoft Corp. President Brad Smith criticized financial technology firms attempting to issue currencies, saying governments are best suited to play this role, according to a Bloomberg report.

  • Speaking at a Bank for International Settlements conference on Wednesday, Smith said he is not a big fan of encouraging Microsoft to participate in the issuance of a digital currency, the report 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,” said Smith.
  • One such private firm trying to issue its own digital currency is social media giant Facebook, which is seeking to launch the stablecoin diem (originally called libra).
  • The prospect caused policymakers and regulators from around the globe to express their concerns over potential privacy and money-laundering risks, as well as the possible loss of control over the monetary system.
  • “I think the world has been better served by what has been a movement over centuries to put that [digital currency] in the hands of governments. 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," said Smith.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.