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00:00Normally you are scathing over the underlying value of Bitcoin. What will be the catalyst that will expand the supply of Bitcoin providing a lessening of bitcoins value. Well compared to other crypto currencies the only advantage of Bitcoin is that its supply cannot be easily manipulated them because many of the other crypto currencies the supply is increased by fiat by the founders. While there is a case of good I think I'll agree that there in supply of bitcoin. My argument against bitcoin is not the one thing I have against other crypto currencies that are being debased. We live day in day out is around that it doesn't have any fundamental value. First of all calling them the currencies is a misnomer. For some to be currency has to be a unit of account is scalable means of payment and a stable store of value. On all of these counts neither bitcoins or any other crypto currency is a currency. First of all. Secondly there is plenty of academic evidence suggesting that the price of bitcoin has been manipulated at this time. About about Tom Keene dump schemes spoofing wash trading front running make change as well. It's certainly widespread and these are specifically ones stable coin. Father will supply has increased this year alone by 14. Down from 4 to 20. And every time the price of bitcoin OK it supplies normal. So I have good reason to believe that he's manipulated normal and he doesn't have any intrinsic value. Okay. Because of time Nouriel I want to cut to the chase as I did with Mr. Caray which is this belief that we can develop an adult cryptocurrency business without crime without scam and without the lack of transparency the opaqueness within the global financial markets. Can we do bitcoin and crypto currency without crime. Well if you had read the enforcement of Emily Chang and KYC anti money laundering and not your customer then you could have some of these things being regulated but then that would not be used for those shady activity. The problem is that I think that we're going in the direction in which I'll be international central bank. Digital currencies. China is doing it. The European Central Bank has a proposal and other 20 central banks and proposals on I think even the Fed. Given that everybody else is going ISE is going to have to do it once we have a central bank this upturn and see every individual not just banks. Every business is gonna have an account with a central bank so we can make payments cheaply safely instantaneously clearing and settlement and therefore a central bank whose own currency is going to dominate not only crypto currencies that have no means of payment value. Your they're not scalable but even bank deposits and wires and other alternative digital payment systems exist today. That said evolution is coming. That's the future of money and of currency not crypto. But what does it mean for registration oil and enforcement. You know one of the questions that we were asking the NIKKEI is actually is there a danger to the financial system. Is it a danger to stability. And if for example you know someone goes from France to another country and wants to pay digital currencies what does it mean for what data we need to collect on that person. Well this since there were central bank digital currencies going to be that the Rio Emily Chang and KYC banks are already doing this job for any bank account. So if you have a bank account and then you are converting some of your bank deposits in an account at the central bank. The job of doing them may care what KYC is going to be outsourced to. The current financial system is doing quite a good job. So central banks are not going to go and verify every individual or every business and so on. So I think those issues can be managed by well and easily in collaboration within central banks. In the current system of commercial banks. Even the digital payment system exists right now say PayPal or Venmo or Square or only which are fake. They are usually linked to your bank accounts and therefore some of these doing they may yell. And therefore if that transfer of money is cross-border of course cross-border transfers always take longer because that is these Amanda Lang seek on the issues that are less of an issue within a consequence. But all those things can be managed and are already processes to think about what you're going to do when you have a central bank digital currency. We look at covered. Has it really accelerated the cashless society by a decade. It ISE in many different ways. First of all catching bank notes and coins can potentially transfer the disease. Secondly we've realized that there is a constrain on how much in countries that have a negative policy rate. You can go negative because you're going to have a reversal rate when an excess reserves can be converted into cash. If you have a digital currency 40 centimeters of digital currency and you face up cash you can go more negative in terms of the policy rate if needed in an economic slump. And in many countries the use of cash is disappearing. You know in places like Sweden or in well not even the beggars in the street are using it. You are a fraud on that phone article to get a donation. So we're going to society is going to become cashless. Therefore central banks have to think about Imani and they're doing it. The only one who's behind it currently is the fact that it wasn't even.

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Bitcoin Doesn’t Have Any Fundamental Value, Nouriel Roubini Says

NYU Stern School of Business Professor Nouriel Roubini makes the argument against Bitcoin as he says there is good reason to believe the cryptocurrency’s price is manipulated. He speaks on “Bloomberg Surveillance.” (Source: Bloomberg)

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