Central Bankers Argue Digital Currency Requires Institutional Control
A recent paper by two senior central bankers in Europe suggests that the technology underlying bitcoin could serve as the catalyst for change in the global money and payments infrastructure. Entitled "The Evolution of Central Banks: A Practitioner's Perspective" - and co-written by Bank of England chief economist Andrew G. Haldane and Jan F. Qvigstad, executive director of Norges Bank, Norway's central bank, the paper covers the evolution of central banking and the challenges that have arisen in the era of digitized monies. Perhaps most notably, the authors reject the idea that....
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Cryptocurrencies are very unstable for them to become a widely used method of payment, the Nigerian and Kenyan central bankers have reportedly said. In addition, the bankers claim that cryptocurrencies also pose a risk to financial stability. Narrowing the Financial Exclusion Gap The Nigerian and Kenyan central bankers have said cryptocurrencies are too volatile to become an acceptable payment method. The bankers also insisted that cryptocurrencies pose a risk to financial stability, a Reuters report has said. As per the report, the bankers namely, Kingsley Obiora, the deputy governor of....
eCurrency Mint (eCM), a Dublin-based company that has pioneered a new technology that enables central banks to issue digital fiat currency, has received an undisclosed amount of Series C funding from Omidyar Network, a global investment firm launched by eBay founder Pierre Omidyar. The investment helps sets the stage to establish digital fiat currency, which portends numerous benefits over physical currency for bankers, merchants and consumers. The Wall Street Journal also has an article noting that eCM has met with 30 central banks which are exploring digital currency backed by....
Ahead of a session of key cryptocurrency experts in the UK witnessing before the Economic Affairs Committee of the Parliament on Tuesday July 19 to explore blockchain technology, the Bank of England has released a research paper that studied the macroeconomic consequences of issuing central bank digital currency (CBDC). “I don’t see how banks could compete,” said Peter Stella, former central-banking head of the International Monetary Fund and director of Stellar Consulting LLC. The Wall Street Journal suggests that a central-bank-issued bitcoin would be a “means for policy makers to....
Knowing that I control my money is a type of peace of mind that cannot be provided by a fully “stable” monetary good controlled by central bankers.
Forecasting how the global economy will evolve is becoming all but pointless. Anyone can create their own forecast and be right up to a certain extent, but the long-run scenario is impossible to guesstimate right now. Bitcoin users have no love lost for central bankers, and vice versa. Many central banks use rather unconventional monetary policy tools, which is causing friction within the banking sector itself. Something will have to change, as the advantages of Bitcoin and digital currency over central banks become more apparent every day. When people in the Bitcoin world hear the term....