Cryptocurrencies will never replace central bank issued fiat currency, according to a representative from the Romanian central bank. Daniel Daianu of the Administration Council of the Romanian National Bank, said that the role of central banks meant it would be impossible for digital currency issues to replace the function of fiat within the economy, Business Review reported. At a conference this week, Daianu said it was important to be mindful of different institutions and their varying roles within the financial system. \u201cWe must be aware of the difference between institutions and the roles they have. It is important for these roles not to disappear. Of course, technologies ensure business models and they have always done so. The segmentation of markets has been done for decades, and fintech helps business,\u201d he noted. \u201cCurrency is always backed by a last-resort lender. In markets, the state is the only possible last-resort lender. When the banking system was saved, it wasn\u2019t crypto banks that were saved. Central banks intervened by issuing base currency, which was followed by non-conventional measures.\u201d Daianu suggested cryptocurrencies could not substitute central bank currency, but central bank currency could be issued digitally in the future: \u201cCryptocurrencies will never be able to substitute the currency issued by a central bank. What can happen is for central banks to have a digital currency, but that will also be issued by the bank, and commercial banks will receive digital currency that can multiply. I do agree, however, that new technologies lead to disintermediation and this feature of decentralization shows us the merits of networks.\u201d This, he suggested, could ultimately benefit Romania, which continues to suffer from what he described as a \u201cweak capital market.\u201d Daianu explained, \u201cWe have a weak capital market, not just due to the transaction volume, but also in terms of the number of listed companies. The issue of capital markets is a European one. In the US, capital markets finance three quarters of the economy, while in Europe they have a much lower stake, and there are major differences between countries. 80 percent of transactions with derivatives go through the London market and these things aren\u2019t related to the concept of Brexit; they are very practical.\u201d Daianu\u2019s views echo those from central bank representatives elsewhere, many of whom have criticized the suggestion that cryptocurrencies could replace central bank money, unless the tokens themselves were issued by central banks as lenders of last resort. It comes at a time of increasing interest in central bank digital currencies from reserve banks worldwide.