BIG NEWS!!! Central Banks Issuing DIGITAL CURRENCY --- Good Idea or Bad?

in cryptocurrency •  8 years ago  (edited)

According to a recent article from The Wall Street Journal, Central Banks of the World maybe looking to issue their own digital currency. They argue that it will help boost the economies of the world. 

The article also cites the advantages of decentralisation that digital currencies provide. Since digital currencies do not require a middle man like a Central Bank, and payments can be made directly to one another on a global level, it will help get rid of the overhead expenses like transaction costs, transfer fees or any number of different charges that the banks levy on fiat currency transfers.

The article also goes on to say that if the central banks were to issue a bitcoin like cryptocurrency, it would mean a profound reshaping of the financial structure of the world. That’s pretty obvious because of the very nature of digital currency. People are bypassing the banks altogether and making payments to each other even in the early days of bitcoin. Think about what will happen if digital currencies of the world are accepted everywhere throughout the world.

That probably is the reason why central banks are now looking to jump aboard. They realise the power of the digital currency and want to get in early to regulate it, to any extent they can by issuing some of their own! But if the government does get involved, doesn’t it create a paradox? Since, the very point of a digital currency is no involvement of the government!

So what do you think guys? The central banks jumping in. Good Idea or A Very Bad one?

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  ·  8 years ago (edited)

Very bad idea. Government issuence of currency is not needed nor is it ideal. Let the free market develop and determine currency

Government is the one who fucks up the currency

Yeah, I totally agree! The whole concept of a digital currency would fail if government was to get involved. It would be like inviting your really distant, uncool, uncle to your rave party!! LOL

It would be nice to see a link to this article. I think there might be some confusion here with regard to digital currency and cryptocurrency. It can be argued that the U.S. dollar is already a digital currency. The method with which central banks from around the world move money is highly efficient and seems to work well. It's for this reason that I do not believe central banks are as eager as you say to jump on the crypto-bandwagon.

Of all the cryptocurrencies out there, Bitcoin is the only one that works at the moment - but still does not hold a candle to the pound, dollar, yen, etc. Time will tell, but as of now, the central bankers have more pressing issues to deal with.

I believe what they are talking about is cryptocurrency. Here's the link:
http://www.wsj.com/articles/the-central-bankers-bold-new-idea-print-bitcoins-1468936751

Please comment if I am wrong in anyway. I will make the necessary edits. Thank You :)

  ·  8 years ago (edited)

The article appears to be twisting the paper's quotes a little. None of the author's quotes mentioned say anything about Bitcoin or cryptocurrencies. Also, I don't think these economists are apart of the equivalent to the U.S. Fed's Board of Governors.

Well, it was a long research note. Maybe crypto was implied?? Who knows.
But it's the WALL STREET. So it might have some knowledge of the matter, right?
Again, please correct me if I am wrong. I am new to these matters of currencies.

  ·  8 years ago (edited)

Here's the thing - we are ALL new to this. Don't assume that the Bank of England or the Wall Street Journal are any more knowledgable/sophisticated on this subject than you are.

There is no question that central banks are investigating this stuff, but the article does more cheerleading than anything. WSJ is in the business of selling stories, so that's their objective. I don't know if you read the original paper, but I have not. And I am interested to see the whole story.

What I have learned from Bitcoin is to be extremely skeptical when it comes to brow-raising claims - even from reputable sources.

On a more Bitcoin-related note, I think it has a better chance of becoming a solid store of value rather than as a transacting currency. A lot of the Bitcoin community continues to make the claim that Bitcoin can solve inefficiencies that frankly don't exist.

it depends on whether it is centralized as XRP or decentralized as BTS

Seems like something we all should just not invest in on the principle of it.

Crypto-currencies and decentralization is about defeating large hierarchical organizations like the big banks in the first place...

You are absolutely right!! It would defeat the very purpose of its existence!!

Glad we see eye to eye on this :)

Yeah!! :)

agreed - BAD IDEA

its sad too, they can use existing money to spike prices and profit from crypto.

I plan on writing a post titled "coin juggling" which will outline how a unified team of crypto coiners can and will save the crypto industry from banks spiking the prices for banking profit pump and dumps! COMING SOON!

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Will be waiting for the article you plan on writing! It will be an interesting read! Thank you!
As for the steemengine, keep it going! :D

  ·  8 years ago (edited)

Good idea. Governments have great influence. If they are serious about digital currency, common people will be too. And common people will then be introduced to the option of having a currency that performs the same function as their country's currency without their government having the ability to manipulate it. This will draw mainstream attention to Bitcoin. At least I think so.

interesting views!! thanks for sharing :)

  ·  8 years ago (edited)

Thanks for posting! Check my latest one out if you are interested.
https://steemit.com/money/@mrzazaful/mainstream-media-influence-in-steemit

sure man! upvoted it! :) we can only support each other right? :)

Thank you! Yup