The analysts from Morgan Stanley, including chief economist Chetan Ahya, have spoken about the impact of CBDCs on crypto in a report recently released:
“Cryptocurrencies will still exist, as they continue to serve other use cases … For instance, some cryptocurrencies can function as a store of value … as some segments of the public do not place their full faith in fiat currencies.”
The report mentions that the uses and appeals of CBDCs and cryptos are distinct. They’ve also said that cryptos can be both a store of value (like gold) and a speculative asset.
More and more people are seeing Bitcoin as a store of value, including the president of the Federal Reserve Bank of Dallas, Rob Kaplan, and US Senator Cynthia Lummis.
The report also noted why the number of investors interested in crypto is growing:
“Investors’ interest in cryptocurrencies has risen alongside the unprecedented monetary and fiscal policy response to the pandemic.”
Instead, Morgan Stanley considers that CBDCs may represent a bigger threat to stablecoins.
The bank has also highlighted that CBDCs may end up being rather different from cryptos since it is unlikely they will use blockchains. This sentiment was also echoed by the European Central Bank, which declared that CBDCs have little to do with crypto, which is seen as being a speculative asset and not actual currency.