​Cryptocurrency will not destroy traditional finance, says the | Altcoin Holder

​Cryptocurrency will not destroy traditional finance, says the former head of the Central Bank of Hong Kong.

The former head of the Hong Kong central bank said that cryptocurrencies will not destroy traditional finance and that volatility will hold back the development of many crypto assets.

Norman Chan, former head of the Hong Kong Monetary Authority, gave an interview to the 21st Century Business Herald. Chen said that crypto assets like Bitcoin (BTC) can never become "currencies" because they "have no intrinsic value and their prices are too volatile."

Chan stated:
“Bitcoin can be used for speculation and does not qualify [to be considered a currency].”

He also discussed stablecoins, saying:
“Stablecoins have many uses. They can reduce transaction costs and improve the efficiency of transactions. But they cannot undermine the use and replace traditional finance.”

He explained that decentralized finance (DeFi) is also inferior to centralized models, as in the DeFi world, investors “generally don’t have protection.”