During the Bitcoin Summit, one of the largest to date to take place in Israel, the head of the National Council, Avi Simhon evidently discussed the inabilities of cryptocurrencies, how bitcoin is “intrinsically inefficient” and soon doomed for extinction reports Coin Telegraph.
Clearly, Simhon has made strong statements that are sure to induce debates and he has since made several cases that he believes are supportive of his statement. First, like many existing leaders, Simhon is not found of Bitcoin’s energy consumption noting that it could cost “trillions of dollars of actual cost in energy,” on a global scale. He trusts this to be the key difference in countries that still support paper money over digital currency.
This being said, he appears to be in support of digital currencies. In particular, he reasoned that despite the potential losses that may arise due to the use of digital currencies, some countries might prefer its uses because of its known efficiency. He also added that the way in which money is exchanged is surely to change, but the model used as the foundation will not be equivalent to that of Bitcoin. By this, he means that the likelihood of a decentralized, peer-to-peer system doing well is much less compared to one that supports “a centralized-bank backed digital currency (CBDC).”
As for Israel’s current stance on cryptocurrencies, Simhon has noted that the national bank has since considered and decided against making Israel’s national currency available via digital currencies. The decision against digitalizing the national currency is due to the fact that no other country has done so, as per Simhon himself.
Simhon wraps up his case in relation to the crypto sphere by addressing the fact that doubts surrounding the digital assets will always persist because of its associated cons and negative impacts related to terrorism and fraud.