Why cryptocurrencies are attracting growing attention Central banks

Throughout the greater part of his not very long life Bitcoin was sort of a toy for computer geeks, and the banks and the government ignored him. This all changed at the end of 2017, when the largest cryptocurrency very quickly reached new historical highs. Since Central banks pay more attention to the cryptocurrency. And especially in recent months, as Facebook threatened to occupy a dominant position in the market of money transfers.

Bankers need own cryptocurrency

The benefits of digital currency are obvious: faster and more efficient payments — this is definitely good news for all. Banks get huge profits by turning clients ‘ money and digital currency will help them to move forward in this business even further.

Facebook with its project Libra attracted the attention of regulators the world and sent the bankers signal that it is time to Wake up. If they are not able to improve their archaic and expensive mechanisms to transfer money, which are mainly based on SWIFT, it will soon be better alternatives.

Of course, in the world there is demand for projects such as Libra, but no one wants to be in control of Facebook. In fact, Bitcoin does exactly what is required of him, but its volatility — that is, a sharp change of course — still allows you to use the cryptocurrency on a daily basis.

Source: Bitcoinist

Read on: PayPal came out from the Association of Libra. Why is it good for Bitcoin?

The Central banks of China, Sweden, Bahamas and Thailand are already experimenting with their own cryptocurrencies, and many of them will be launched in the near future. The US Federal reserve while carefully watching the side and most likely wants to avoid all collisions with regulators, which only limit innovation and development.

Threat to national sovereignty from the giant social network was large enough to trigger an avalanche of criticism in the direction of Libra. There is also a risk that Central banks will not be able to effectively manage monetary policy (i.e. print more money) if there is an alternative world currency.

Central banks are looking for wholesale solutions that would limit access to some stablein, exclusive giving it to banks and financial institutions. They will be used internally to make a fast and cheap payment flows within the existing financial system.

Useful facts: Stabilini can lead to mass adoption of crypto-currencies and a rise in crime.

The retail solution has allowed them to strictly control the account holders who use digital currency. The Central Bank would run a distributed registry and had complete control over supply and flows of any own stablon.

China is forging ahead of other

Source: WAMU

There is every reason to believe that China will become the first major country to issue their own crypto-currency from the Central Bank. If we talk about the innovative research and development, Asia has long gone ahead of the others. However, it is too early to speak about any specific dates of the launch. The list of vacancies the people’s Bank of China can understand that he wants to hire more technical experts with experience in cryptography, econometrics, and microelectronics. Surely these professionals need to develop new alternative cryptocurrency Bank.

Moreover, the position of China is relatively decentralized scriptaction — whether Bitcoin or an Ethereum has not changed. That is, people still will not be able to buy cryptocurrencies for Fiat money. Central banks are unlikely to ever see public cryptocurrencies in a positive light. Though, because they are outside state control and have no restrictions.

It is too early to say, will eventually run Libra, but one thing is for sure. Facebook initiated a large-scale process, and now all the banks around the world are studying the possibility of issuing new centralized tablconv. Perhaps some projects will be implemented in the coming years. Let's wait and see.

In our cryptodata of hontarov you will find lots of other useful information. Look.

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