Exposing the Truth Behind Bitcoin Clones Issued by Central Banks
A supply cap of 21 million bitcoins would be a problem, if the currency was only divisible up to two points behind the decimal. But that is not the case, as the “cent” value of 1 Bitcoin is called a Satoshi, which is 0.00000001 Bitcoin. As you can see, Bitcoin is divisible up to 8 points behind the decimal, and if we were to compare 1 Satoshi to 1 cent in fiat currency, a full Bitcoin would be equal to 10 million. Multiple that number by 21 million coins, and there is plenty of funds to go around for everyone in the world. Another point the article by The Telegraph focuses on is how....
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On Tuesday the Reserve Bank of India (RBI) issued a statement warning the public against the use of virtual currencies. The bank cautioned users, holders and traders of virtual currencies about the potential financial, operational, legal, customer protection and security-related risks they are exposing themselves to. The bank pointed out that it has been keeping a close eye on developments in the virtual currency world, including bitcoins, litecoins, bbqcoins, dogecoins and other altcoins. "The creation, trading or usage of VCs including Bitcoins, as a medium for payment are not authorised....
Now that Bitcoin is gaining more popularity all over the world; the time has come – once again – for central banks to warn about the potential dangers of digital currency. Just a few days ago, a similar warning was issued by the Minnesota Commerce Commissioner. But this time, it’s the central bank of Kenya issuing a statement on trading or holding Bitcoin and other virtual currencies. Similar to how most central banks in the world would respond, Kenya’s central bank is not a big fan of the “dangers” represented by Bitcoin and other digital currencies. Bitcoin is not regulated in Kenya at....
It is impossible to predict the global effect of central bank digital currencies right now, yet the concept can create very dangerous precedents. Financial institutions have shown a keen interest in the concept of distributed ledger technology, and some countries have even taken the plunge of creating their own national digital currencies. While digitizing fiat currency may seem clear as day to same, it could pose a major threat to the business model of commercial banks. Bank of England is rethinking their plans with blockchain technology for the time being, as all of the risks need to be....
CBDC, also central bank digital currency, is a digital token issued by a country. Many governments and central banks around the world are exploring the use of CBDCs. Even though they mostly remain in the hypothetical stage. However, more than 80% of central banks are looking at digital currencies. The Reserve Bank of Australia announced […]
China recently proposed a set of global guidelines on central bank digital currencies (CBDC) earlier this Thursday, discussing potential uses and implications of a sovereign digital currency. With the coronavirus pandemic exposing inefficiencies in traditional payment systems, there has been a growing need to digitize legacy financial infrastructure. With the threat of cryptos toppling fiat’s power also looming closer, central banks around the world have begun to develop their own CBDCs. Mu Changchun, the director-general […]