Content adapted from this Zerohedge.com article : Source
Authored by Alex Deluce via GoldTelegraph.com,
Central banks around the world are getting nervous about cryptocurrency.
Their reasoning is two-fold:
-Security is at the top of the list. The hack a couple weeks ago of nearly $500M NEM really set off alarms.
-Cryptocurrency allows people to store value in the form of digital currencies.
The Federal Reserve Bank hasn't jumped on the cryptocurrency bandwagon yet. According to Chair of Federal Reserve, Jerome Powell, technical issues and risk management will present a challenge and is best left to the private sector. However, future policy plans are not out of the question either.
The European Central Bank has been equally unimpressed, linking Bitcoin with unstable currency fluctuation, tax evasion, and other crimes. At this point, the ECB does not see cryptocurrency as a threat to their monopoly, but it's unclear if and when this attitude might change in the future. However, it's interesting to note that although the central bank is pushing this rhetoric to the public, they are constantly exploring ways to eliminate cash and centralize this monetary structure preventing people from choosing alternative currencies.
Japan is still ruled by the cash. While credit cards are acceptable, many huge financial transactions are still being conducted in paper money. The Japanese have an innate distrust of debt. Moreover, cash transactions are more difficult for the government to track. For the time being, Japanese are considering cryptocurrencies such as Bitcoin, only as a way of investment rather than a method of payment. However, the Japanese government did take note of the recent $500 million theft of digital currency from Tokyo's CoinCheck, Inc. At the moment, there are no plans from the Japanese government to issue any form of cryptocurrency. However, Japanese people stockpiling cash due to draconian negative interest rates might be serving as the catalyst for their interest in the digital currency. In fact, the country is becoming one of the biggest markets for cryptocurrency with 40% of the Bitcoin trading from October to November 2017 being conducted in Yen.
Germany is another cash-friendly country. The Deutsche Bundesbank is wary of the Bitcoin's speculative nature and is hesitant to include cryptocurrency in its established business model. However, the bank has shown interest in developing cryptocurrency technology into a payment system. This interest makes sense as Berlin is dubbed "Bitcoin Capital of Europe." Germans enjoy dealing in Bitcoins from buying real estate and booking holidays to dining in bars and paying for education. Hence, the shift in Germany towards cryptocurrency is quite evident.
One central bank paying positive attention to cryptocurrencies is the Bank of England. It is investigating the technology for protection from cybercrimes and improvement in the speed of digital payment methods between buyers and sellers. However, the Bank of England is not currently considering introducing its own cybercurrency.
The Bank of Russia has called cryptocurrency a pyramid scheme. It intends to block relevant websites that may enable its citizens to invest in Bitcoin. Russia has declared cryptocurrency illegal even though President Putin's internet ombudsman, Dmitry Marinichev, is currently building, what's called the Russian Mining Center that has raised $53 million to-date.
The National Bank of Poland went overzealous with its attempts to discourage its people from using cryptocurrency. The bank paid a YouTube star more than $25,000 to talk about buying fake cryptocurrency and losing it all in a crash. The aim is to warn the public about the potential risks of digital currency. The site has had over half a million viewers and this is the only central bank backing a popular video site in its campaign to highlight its message. As a result, several potential investors stepped back and opted not to invest in the digital currencies.
The banks are looking at protecting themselves more than anything else.
Central banks are clearly interested in the potential of blockchain technology but are unhappy about a currency not within their control.
This is what it all comes down to. Central banks are not happy that there are currencies emerging outside their control. The only option for them might be to develop their own that is fully under their control.
It is not an issue that is going away any time soon.
Non-adapted content found at zerohedge.com: Source
The banks are afraid of cryptocurrencies the same way the music industry was afraid of peer to peer file sharing (like bittorrent today)
The music industry didn't die out, they had to change their model, itunes is getting lots of the money, but yet when sharing music became so easy we suddenly had an explosion of new artists and genres popping up so we will see new types of funding and banking models open up soon
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I think it is exactly that. It is the technical evolution of a previous well known industry. That industry will have to decide how quickly or slowly they also adopt and adapt to those technical advances that are transforming the service they provide. There will be champions and there will be laggards in the existing service providers.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Some banks will adapt while others fight and die out.
The music industry, at least the record companies, went about 15 years without making money. They were very slow to adapt. Now that they embraced streaming, they are turning a profit (I believe 2016 or 2017 was the first year in a long time).
There will be companies that adapt...however it is tough since the newer technology is decentralized which makes most companies impotent.
I am not sure how some of these entities will adapt when there are cheaper decentralized alternatives that arent profit driven.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I think we will see new companies arise to build new services ONTOP of the decentralized platforms. If we use SteemIt for example, we are seeing services like dTube, busy, steepshot building their own services on top of that platform. Today they are sharing in the rewards of the content posted through their platforms, earning them SBD as profit. I imagine we will see innovative ways financial services builds their own service layer on top of the decentralized platforms for something similar
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Great points @jeftek.
I would point you to Bitshares for a situation where financial services are being built upon a decentralized blockchain. It is really interesting some of the things being developed there.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This. Well said.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
It is a grand day to know that the Financial Empires are trembling with fright and I am looking forward to their demise. Banks never lived right nor treated their customers right and so they shall have no more fun. Bitcoin shall take Banks down the road to doom. So long Empire Of Evil! You could tell Bitcoin is open, free to join and fair. Banks are not, they are middlemen. Finance is the most regulated industry and yet they still commit massive fraud, financial crime because the potential gain is huge from this behaviour. You cannot corrupt the mathematics behind Bitcoin and Ethereum. It's a far better system...like going from horses and carts to cars.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Since the end of the financial crisis, banks in the US, I read, we fined almost $250B..a quarter of a trillion.
So I agree, they are the ones enslaving humanity and need to go.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This is what I think is going to happen, I think they'll make their own and peg it as the best and the safest, then pay the media to shill it. I think we need to keep our eyes open for this and work together to prevent crypto becoming centralized in the long term. Otherwise it's just more of the same.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Exactly.
We need to keep espousing the idea and benefits of decentralization. That is where the true power lies....not in one particular currency over another.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
This warms my heart. It is nice to see the central banksters squirming.
I think it is becoming obvious that cryptocurrency is breaking their monopoly on money. This is something that is not going away. While they are tinkering around with ways to control it or make it less of a threat, it is charging along.
What is really happening is I see the establishment of a new "nation" taking place. It is not based upon geography but the network one is located upon. We are Steemians....this is the blockchain that we "reside". Over time, more of our commerce could take place on here. We will work, shop, trade, and communicate via STEEM.
This is what the mainstream misses.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The banking industry is afraid of losing its bloated profit margins.
-By using crypto ,you eliminate the middleman,you lower fees
You can also send money privately to whomever/wherever you want without government/banking intervention (ex you have family in Venezuela and need to send them fiat.)
Eventually what i can see and you can quote me is a big bank such as JPM or Citi create a banking wallet to store your crypto in. They will claim it's the safest thing etc etc.
It's just a way they can not only keep track of your assets but also get crypto mainstreamed.
Watch this happen.
Great post @zer0hedge
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Goldman just bought a crypto exchange so they are already starting their entry into it.
It does legitimize it (not that it needed it) but it also brings the wolf into the house.
We need to be on guard.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The Federal Reserve Bank ofcourse can't jump on the cryptocurrency bandwagon. This is because of the lack of understanding, fear of uncertainty and laziness. This is our money they want to stop us from investing in cryptocurrency. Planning to adopt cryptocurrency in the future is no different from adopting it now. A delay in adopting blockchain in the banking system only makes it hard for the banks when the world totally goes crypto. Am glad for countries like German showing interest in developing cryptocurrency technology into a payment system. The fact that the Germans enjoy dealing in Bitcoins from buying real estate and booking holidays to dining in bars and paying for education, shows the start of a transition to a cashless society. Germany joining the trend of adopting cryptocurrency in the payment system will be a huge statement on the globe.. One which will have an influence on many countries they associate with to join. And this they should adopt as soon as possible.
It will be hard for banks to pull back the numbers they have been having transacting using the banking system in the future when cryptocurrency has grown wider. Much as they are trying to avoid illegal and illicit activities from happening, let them also see the positive side. At the rate at which cryptocurrency is growing.. they can do nothing about it. At this point they have to see the positive side and find means of embedding blockchain in their system.
Besides their strong point of argument is biased; US dollars have been used more than cryptocurrency in funding illegal and illicit activities. This is on record. This is the time to unite and find a way of fighting the use of currency in funding illegal activities for the common good of the people and the world at large.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Cryptocurrencies are an informal market and unregulated, and Central Banks are accustomed to operate in formal markets under heavy regulation.
The $500M NEM that were stolen are a problem for the crypto world and banks are trying to abuse that recent event, but the reality is that it exists a lot of corruption inside the banks and the actual economy, and many millions have been stolen too.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Bitcoin is no more dirtied by criminals than gold was dirtied by criminals, or fiat currency was dirtied by criminals. Bitcoin can't be easily controlled by regulation. That is what scares them. I'm not scared for the banking industry, I despise it and there's not much that would make me happier then to see the entire Banking industry go under and every greedy piece of human feces who took part in it, LOSE EVERYTHING THEY STOLE through fractional reserve banking. They should be banished from the planet. Banks biggest weakness is operational inefficiency and huge overheads. Time to start cryptocurrency based financial institutions ,lending ,accepting deposits. Financing renewable energy & e-automobiles. I belive that if the U.S. government, banks or any other government were really smart they would roll their fiat currency over into Bitcoin and then happily watch as all of their government debt magically dissolved.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I fully agree with your vision. However, there is a BUT ... When you state:
"...they would roll their fiat currency over into Bitcoin..."
I'm nearly sure this will never occur. Any bitcoin can be traced and I would bet all my crypto that most political man will not be happy with this.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hi. @zer0hedge
Over the past year there have been many governments and central banks including the Turkish Central Bank concerned about the impact of bitcoin on the global financial industry, and how to continue to evolve into a major storehouse of value. Eventually surpassing bitcoin gold, and reserve currencies such as the US dollar and the Japanese yen. If bitcoin continues to grow at a phenomenal rate in terms of day-to-day volume, daily volume, user base, infrastructure and certification by major financial institutions, it will inevitably become a key element in the global finance sector and competitive for both government and central banknotes. "Eric Lam of Bloomberg, who covered the Istanbul conference in Istanbul in early November, wrote:
"Digital currencies pose new risks to central banks, including their control of money supply, price stability, and the transfer of monetary policy. However, the Turkish central bank said that digital currencies may be an important element of the non-monetary economy, and the technologies used can help accelerate and make the payment systems more efficient. "
Bitcoin defies central banks
Bitcoin has become a challenge for many governments and central banks, because they force the authorities to take either decision; either adopt bitcoin and be at the forefront of bitcoin development or to isolate their economy by rejecting bitcoin. Various studies have also shown that more than 90 percent worldwide have lost confidence in banks and major financial institutions. They feel they are not connected to banks, and believe that banks do not understand or address their needs.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Other then disabling people from withdrawing money from coinbase some people expect banks to make their own cryptos, which would just establish cryptocurrencies even more. If banks disable people from withdrawing money to a crypto gateway, all they'll need is one bank to get greedy and open the gateway back up and that bank would be flooded with customers since other banks would have it closed.I think the amount of people who invest in cryptocurrencies is not yet big enough to really hurt a banks business if they chose to stop withdrawals into the cryptospace.just because they are late doesn't mean that they can't still build a cryptocurrency that is really good. Other than that, I see people saying this all the time but at the same time they put a ton of money into ICOs. So they can start building their blockchains now and be successful but banks can't?
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The power of those who control the banks is in fiat. With fiat they can control everything else as long as there are people foolish or corrupt enough that will choose to continue to take fiat.
A system that allows actual free market exchange beyond the interference of banks and their allies the people who call themselves the "State" - that is terrifying to them. If such a system continues to grow their main tool of control could loose power and eventually be defeated. It could change the whole nature of our planet from a slave prison to a new golden age of freedom and cooperation. Then we can finally go to the stars
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The rise of bitcoin as an asset may result in monetary authorities starting to hold it. In fact, some central banks are already holding Bitcoin. Reportedly, the Bulgarian government in its account holds more than $3 billion in bitcoin, most of which are funds seized during law enforcement investigations and crackdown on dark web marketplace operators. The Bulgarian authorities in May officially declared that it had confiscated 213,519 bitcoins. At the price of $15,000, now those bitcoins are worth over $3.2 billion.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
@zer0hedge..bro Everything is fallible. Especially a system that relies on continuing internet freedom.
As long as the code is public, you are much better off though. I am thinking that what controls a particular crypto is the coding and the potential of an outside party to stop it through attacks. I have much more confidence in the "good guys" staying ahead of the "bad guys" when intelligence and motivation are keys to success in that conflict. Those who wish to no longer live as slaves or watch the planet be destroyed is reaching critical mass. The best of us, and the most motivated may carry the day.
If the enemy is forced to attempt to destroy ..thank you for sharing with us
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Yeah i especially get nervous when you phrase it like that. How closely related to ETH is another thing i don't like. With Putin/Microsoft ect....becoming in ETH especially, and now Bancor....I'm already pretty skeptical. That being said I would be interested in how the smart contracts will hold up and seeing if they actually can help stabilize the prices. Liquidity is definitely a concern as well. I hope we all don't regret what we're asking for....Decentralized will be the first thing to go i predict.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
No doubt crypto is not save at any where because it was scammed by any on or haceked by any theif so bank does not belive on this currency because they know theif or hacker attack any time and theif all from them so they are aaffraid from this system
if only security ystem is done in crypto than every issue is solved and banks also accept it only when it will secure Thanks for sharing this information
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
The decentralized structure and bitcoin nature completely eliminates the need for central entities and authorities within the network to settle transactions between two parties. Where anyone within the bitcoin network can send and receive transactions without any intermediary and smoothly. As such, the paper described the Bank of Finland as a "decentralized financial network", as it operates according to its own rules and creates a new economy effectively. According to the Finnish newspaper,
"Bitcoin is a proprietary commodity operated by protocol, not by an organization for management. Where monopolies are familiarized by management organizations with the discretion to determine and then change prices, offers and rules. Monopolies are often organized to prevent or at least mitigate abuse of power. "
It will win in the end whatever they do and encryption means the future
Thank you for the excellent topic so much I want your opinion in my participation
I am so glamorous sir. @zer0hedge
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Its helpful cryptocurrency post. I believe that , cryptoes are future........
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
*$500 M hack was of NEM (XEM), not NEO
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I am sure no one would want to take reaponvilitt when Money is stolen , and it’s ndver a little amount so I don’t blame banks for always being in the middle about it
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Blockchain is just marketing word. Without consensus, currency issuing, replay protections and other mechanisms its just a simple data structure. Banks are interested in taming cryptocurrencies with open blockchains and they can only do it via exchanges.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
They scared cause they know they are not relevant anymore
If central banks want to stay relevant in the future they will need to do a lot of adjustments and will need to support cryptocurrency this is the future
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
i think we should do everything for crypto because it has ability to control worlds economy
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
I thought before that banks are the hero when I grew up that I will put all my hard earn money to what they call "reserve" and trust on their perfect banking system but things changed when I'm old enough to understand that these people behind it are just fat greedy ****. They've been lying in front of us the whole time.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
You are true. In our country central bank collecting information about bitcoin traders.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
hey kawan. really interesting your article i feel interested. i also puya berpa article .anda can read and you also can like sometimes suitable according to you. will be waiting.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks for this update about the banks star struggling over cryptocurrency in different country.now , i know what is happening across the world in crypto sphare.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks for sharing i will done up vote I always see your post. And follow you
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit