Why in crypto-currencies from Central banks makes no sense?

Former Chairman of the Federal reserve Alan Greenspan said that Central banks “makes no sense” to issue its own digital currency. With this statement, Greenspan spoke at the annual conference on economic prospects, which was organized by the Chinese financial magazine Caijing.

Bitcoin from Facebook also makes no sense

Greenspan’s argument is primarily based on the fact that the national Fiat currency supported by sovereign credit. That is, they are provided with the exclusive position of the state and its institutional structures. Here’s what he said on this subject during his speech.

Fundamental sovereign credit of the United States far exceeds anything that can be imagined Facebook. Even technological behemoths in the era of the rule of FAANG — that is, the five most successful technology companies Facebook, Amazon, Apple, Netflix and Google can’t compete with the depth and breadth of U.S. financial markets.

In other words, Greenspan's position is simple. The power of the United States, banks and financial markets is too great to doubt it. So Facebook will not be able to create a competitor to the dollar, even if I wanted to. And the government makes no sense something to invent, because their situation is and so exceptional.

Greenspan, who was once appointed Yeshe Ronald Reagan was at the helm of the fed during the stock market crash in 1987, designated as “Black Monday”. He also held this position during the technological boom of the 1990’s, Mexican, Asian and Russian financial crises (1994, 1997, 1998) and breaking the post-dotcom-bubble in the 2000s.

Given his track record from 1987 to 2006, and activities during multiple crises, and in 1999 TIME magazine put on the cover a photo of Greenspan, along with the Minister of Finance Robert Rubin and Deputy Minister Lawrence summers. Then one of the most popular media called the trio “the Committee to save the world.” Source: Amazon

After the historic financial collapse of 2008, Greenspan’s reputation went into a steep dive. Then it along with the team was accused of pushing a policy that has pushed the global system to its knees.

Who creates the national cryptocurrency

The tension in the relations between China and the United States continues to grow. In these circumstances, the Central Bank of China is likely to become the first who will release their own digital currency.

Chinese military. Source: Ecosia

Not long ago, Tunisia started a process of digitizing and Dinara plans to release the digital currency of the Central Bank on the blockchain. However, it will be backed by a paper chart. What is noteworthy is that service chain will deal with the Russian technology startup.

As for the US, in October, the Committee on financial services of the house of representatives sent a letter to the current Chairman of the fed Jerome Powell to inquire about the prospects of issuing the national currency. The lawmakers said that “the fed has both the capacity and the mandate to create a safer, more flexible and more stable monetary and financial system by developing a digital version of the dollar”. The head of the FBI Christopher ray called cryptocurrency problem, which in addition will only increase.

Anyway, any mention of cryptocurrency and blockchain at such a high level should have a positive impact on the overall acceptance. In this case, we can use the term "Overton window", when initially negatively perceived phenomenon becomes increasingly relevant in a society with every reference. Especially if you mention it people on top.

In our cryptodata of hontarov you will find lots of other useful information. You can also drop in Yandex Zen.

Subscribe to our channel in the Telegram. And don’t believe the officials!

Leave a Reply

Your email address will not be published. Required fields are marked *