Bitcoin is A Viable Alternative To Capital Control And Central Bank Dominance
To some people, the question will always remain why Bitcoin is a better alternative compared to government-controlled fiat currencies. While there are many answers to that question, the most obvious reason is to circumvent capital control and a collapsing fiat currency. Throughout the years, Bitcoin has provided exactly that to citizens in need of moving funds out of a country during economic woes. After all, Bitcoin is financial freedom, whereas fiat currency is a master-slave relationship. In the Western world, capital control is more exception than a rule, although the Greek population....
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The Dutch central bank, De Nederlandsche Bank (DNB), has issued a warning on digital currencies such as bitcoin, saying that they "are unlikely to become a viable alternative for traditional currency in the foreseeable future". Recognising that digital currencies fall outside the bank's scope for regulation, the statement on the DNB website warns: "There is also no security in respect of funds received, ie no guarantee that balances will be returned following bankruptcy, and outstanding payments will be executed. No-one monitors whether virtual currency institutions have sound and....
It has been over a year since De Nederlandsche Bank (DNB), the Dutch Central Bank, was vocal about bitcoin. The bank previously voiced its opinion that “virtual currencies are not a viable alternative” to fiat currency, and that they “are unlikely to become a viable alternative for traditional currency in the foreseeable future.” Perhaps because of....
Central banks are paying very close attention to stablecoins, seeking to control them — and decentralization may be the solution. Over the last couple of years, we have seen a lot of interest from central banks and governments in the stablecoin market. The reason behind it lies in the development of central bank digital currencies, or CBDCs.The idea of issuing a digital alternative to cash is a great motivator for central banks. It allows them to gain more control over the transition and processing of cashless transactions, which are currently overseen indirectly through private payment....
The European Central Bank is finally launching its major quantitative easing (QE) in order to fight the euro zone’s slide towards deflation. But with the evident failure of this monetary policy so far and the emergence of negative interest rates, is the ECB creating the perfect storm for virtual currencies as a viable alternative? From March this year until September 2016 the ECB will buy €60 billion (US$68 billion) of assets a month, a total of €1.1 trillion over the given period. Moreover, the President of the ECB, Mario Draghi, left room to extend the program if necessary. The ECB has....
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....