and do not necessarily reflect the view of bcointalk.com .
As the company moved away slowly from cash, the Central banks of their profits, by the issue of said notes and coins at risk.
Many governments have currencies to be afraid of the mass adoption of Crypto, and you are, therefore, currently, the benefits of a self-created, digital Central Bank currency (CBDC).
The Central banks have become aware of the risks that the crypto-currencies for the everyday bread-and-Butter business of politicians: the economy could mean.
Therefore, the debate on the pros and cons of national crypto currencies to private block chains compared to public Blockchain crypto currency is increasingly a political and also investors is on the agenda of politicians.
The media often refer to currencies erroneously government-backed digital currencies as Crypto, without defining the new concept of the digital Central Bank currency.
crypto-currencies are Blockchain Assets and no liabilities for anyone. The Central Bank issued digital currencies are based on a fractional reserve banking system on the basis of the debt and of liability on the part of increasingly highly indebted nation-States.
The BIS reported that crypto-currencies with the intention of are designed to make Central banks as bastions of traditional monetary policy in the face of e-cash and Peer-to-Peer systems is redundant.
Ten years after the publication of Satoshi Nakamoto Bitcoin white paper crypto-currencies of the institutions to be used, you should be Hiking. Blockchain, the Distributed Ledger technology (DLT), which is the basis of Bitcoin is the tool whose application can be extended to a digital Central Bank currency.
the bulk of The money in circulation is already digitized, whether as Bank reserves at a Central Bank or to the Bank account of a local Bank. Only a fraction of all the currencies circulating in the Form of paper money. Digital money, the disabled, however, in the private Ledger, and dozens of heterogeneous databases on the path from the creditor to the debtor will be replaced, missing the speed, stability, scalability, and security of a good cryptocurrency.
“If you can’t beat them, join them”
Many countries are thinking currently about a strategy, with the global rise and mass usage of crypto-currencies. If Bitcoin is the money of the people, are Fiat currencies, the money of the state.
governments and Central banks of India, Japan, Canada, Russia, Switzerland to Singapore, and the Marshall Islands are trying to figure out how to developed the best in a government-backed, digital currency. Various other governments, including China, Estonia and Iran, to think about plans for a currency of their own.
Singapore has to think about the project UBIN, the Banc of Canada the project of Jasper, and the United States of America to play with the idea of a FedCoin while Sweden’s Riksbank on the introduction of the currency, “e-Krona”.
In Sweden has decreased the demand for cash in the last two decades. Several retailers will not even accept more cash, and some of the Swedish Bank branches of no more cash or to take this. Instead, the Riksbank has started a project to determine the feasibility of e-Karsten kronas for individual payments. So far, no decision regarding the applicable technology.
The Marshall Islands to introduce its own crypto-currency, which will circulate as a legal Tender, in line with the US Dollar.
the head of The Swiss stock exchange has suspended the country’s national Bank (SNB) to bring the e-Swiss Franc on the market.
in response, the SNB turned to the media with the message that you don’t see the need for such a step. The calls to the Switzerland, a Blockchain-based national Cryptocurrency to introduce, so come continue to fall on deaf ears by the Swiss national Bank.
Switzerland is a rich country with a flourishing crypto-Valley, and only small Differences in the asset division, if one compares the country with Indonesia and other emerging markets. However, the developments in fast-growing countries such as Indonesia around seem to be the Swiss stock market in my head to haunt.
Although Bank Indonesia has not prevented their exchanges, crypto currencies offer, it has asked its investors, despite the growing number of Bitcoin investors have shown themselves not to sell crypto to own tokens, or to trade. The Indonesian Central Bank does not consider digital currencies as a legal Tender.
Petro, an Oil-backed crypto-currency in Venezuela was spent in Trying to help the national economy. Almost 320 million euros were achieved on the first day of the Vorverkaufes. President Maduro hopes that, “Petro will allow the ailing OPEC member, to bypass the sanctions of the USA”.
Kazakhstan, on the other hand, is considering whether it will follow Japan’s example and crypto-currencies legal tenders, and own national Cryptocurrency to sponsor; the Kazakh crypto tenge, a digital value of investment currency of the country is tied to the Fiat.
The CryptoRuble to be launched in the international markets in circulation, Oleg Fomichev, the Deputy Minister for economic developments in Russia. He also stresses that the CryptoRuble was designed to Russian “digital money, in the light of the digital economy”.
Russian President Vladimir Putin announced that the stone age ended because humanity had no more stones, but because new technologies appeared.
The promise of digital Central-Bank currencies
to represent a Digital Central Bank currencies and CBDCs to an extension of the existing Fiat currencies by Central banks.
CBDC is not a well defined term and is used to describe a range of concepts. Most people associate the term with the Vision of a new Form of Central Bank money. This implies a Central Bank liability, denominated in the existing unit of account, which serves both as an exchange medium and as a store of value.
The concept includes Notes and coins, which are available to everyone as well as billing accounts for licensed banks, already in electrical Form. However, this concept is not based on Blockchain Technology and is currently used for Interbank payments.
The Bank for International settlements (BIS), wrote in a March report on digital Central Bank currencies that Central banks should carefully consider the implications for financial stability and monetary policy at the output of digital currencies.
image source: CT
The BIS is of the opinion that CBDCs are potentially a new type of digital Central Bank money, which is different from the reserves or compensating balances held by commercial banks at the Central Bank. There are various possibilities, including: access (open or restricted); degree of anonymity (from completely to not given); operational availability (of current opening Hours to 24 hours a day and seven days a week); as well as interest-bearing features (Yes or no)
There are old questions about the role of Central Bank money, the scope for direct access to Central Bank liabilities and the structure of Financial intermediation.
One aspect of the current debate revolves around the question of whether CBDC should widely be available or restricted. A fully accessible, open CBDC would he allow that anyone can open an account with the Central Bank, similar to the idea behind Bitcoin is that it is a Bank with its own telephone that is effective in the Swiss Bank account.
CBDCs operate Peer-to-Peer and thereby reduce significantly the importance of traditional banks or of the banking system for the support of banks to maintain their current dominant role.
Commercial Bank can rely less on customer deposits, as these would end up in stressful times, rather at the Central Bank. A national digital government currency would drag the “digital rush” on the Central Bank.
A CBDC for all that would challenge the current Bank model, which is based on the fact that clients make deposits and banks use this money to Fund loans, which serve the development of the economy. The consequences for the business models of banks and the financial stability must be carefully analyzed.
“Anyone can create money, the Problem is to get people to accept it
(Hyman Minsky, an American economist)
money creates the ultimate network effect, and both crypto-currencies and the digital currency the Central Bank could enhance these effects and the current acceptance of Fiat money in the global financial system reduce.”
The Good thing with crypto currencies is that no one owns them really, because they are based on a kind of democratic agreement on a Distributed Ledger, to which all of the ownership rights. You can purchase a part for sale – individual Bits or parts of the Blockchain. In other words, it can be operated with no QE (Quantitative Easing) as a discipline is inherently built into the System.
The Blockchain economy will continue to confront us today and in the future, with a series of choices and a disciplined market – and investment-based economy.
With a focus on new technologies and the increasing use of electronic payments and rising Debt levels, it is appropriate carefully about the future of money thinking.
Each law lecture, the Bank’s currency moves, the introduction of a digital Central in consideration, should consider the possible effects carefully before a decision is made.
it is still unclear whether CBDCs for consumers and businesses is important, necessary or even desirable. The answer will vary from country to country.
Bitcoin has directed the spotlight on an old failure of the current system: the cross-border individual payments and the risk of the committing of the Central banks policy errors. CBDCs, the state’s contribution to the Bitcoin challenge.
