One of the many questions that have become philosophical, which for a long time causes discussions in the crypto community: Will the central banks of the whole world unite and create their own regulated cryptocurrency, as a replacement for existing decentralized coins?
However, this issue is unlikely to emerge from nowhere, as digital payments, according to various estimates, will reach a quantitative mark of 726 billion by 2020, as digital payment systems are rapidly gaining momentum, presenting an increasing threat to traditional cash payment methods, largely due to their convenience and low transaction costs.
At the same time, no doubt, central banks are unlikely to want to stand by and are likely already making plans for a "universal domination" over electronic payment systems, since they have seized control over the cash control system for a very long time.
Not so long ago, the European Union finally sounded the alarm, as bitcoin and the crypto community as a whole, apparently began to pose a rather serious threat to the traditional financial system, increasingly developing decentralized methods of payment, which, according to many analysts, has long provoked central banks to create own cryptocurrencies.
A report from Econ, an organization that analyzes the decisions taken by the Central Bank of Europe (ECB), clearly discerns the warning: "The appearance of legal cryptocurrencies created by banks, even central banks, can reverse the current level of competition in the cryptocurrency market, competing parties ".
Thus, the report traces the existence of a theory that central banks can fully use all their power and influence to influence cryptomarket, creating an extremely unstable situation and conducting preventive purchases. That is, banks can not only directly affect the bitcoin price, absolutely ruining it, but also destabilize the whole cryptomarket, affecting crypto exchanges, and even electronic wallets.
This report also says that the main vulnerability of bitcoin comes from the very structure of the mining industry since only 5 major mining pools control almost 80% of the bitcoin hashpower.
View from the outside
However, it is quite understandable why ECB is concerned about cryptocurrencies. Europe is the main "pool" of cryptocurrencies since 42% of the total number of bitcoins are concentrated, 37% of the leading crypto companies and 33% of all crypto payments in the world are in the EU. However, despite such extensive indicators, only 13% of the miners' activity is concentrated in Europe.
Moreover, the Econ report itself has more questions than answers. Especially considering the contradictory attitude of central banks to cryptocurrencies.
In addition, Bengt Holmström, the Nobel laureate of 2016, who won the Nobel Prize in Economics, warned that such a move (the introduction of the own cryptocurrency by the central banks) would create a very high level of risk for existing financial markets, and also greatly affect the ability of central banks to monitor the events of the "theory of the Black Swan" (preventing randomness).
In any case, the probability of independent destabilization of the government and large financial institutions, through the creation of altcoins, is extremely small.
While banks are quite persuasive in their speeches that they can control or even prohibit the movement of cryptocurrency in hot wallets, in reality, they can not in any way affect the cold wallets, where, at the moment, 98% of all available bitcoins turnover is kept. Moreover, the massive black markets that are in darknet, not only can easily maintain the viability of the industry, but even continue to develop it.
The more likely outcome is that central and commercial banks will, at last, begin to perceive cryptocurrencies as alternative financial instruments, like gold, securities, or bonds. Cryptocurrencies can even help central banks control inflation.
To understand how this works, let's turn to reality: the Swiss Central Bank, in 2017, made a profit of 54 billion francs ($ 55 billion), which is about 8% of Switzerland's GDP, and that's more than Apple, JPMorgan and Berkshire Hathaway combined.
Such a huge indicator translates from a simple pattern: the bank continues to print more money to release them later on into the global market to buy stocks and bonds, and at the same time avoid inflation within the country.
This is almost the same as the Federal Reserve System of the USA, the Central Bank of Europe and the Central Bank of Japan in 2016. Instead of buying gold, stocks, and bonds, banks can issue extra money for the cryptomarket to create foreign reserves.
Posted from my blog with SteemPress : https://coinatory.com/2018/07/27/why-central-banks-dont-care-about-bitcoin/
I think if they did that it would ultimately backfire on them. If the U.S. government developed its own cryptocurrency that would legitimize cryptocurrency to the public and a great amount of them are going to go to the far more developed decentralized cryptocurrencies. Even if they forced them to use Mericacoin(tm) there's not much they can do to stop them from using others as well.
what if US Government will create Mericacoin and advertise it everywhere as "the only reliable cryptocurrency, backed by the economy of USA" ?
They do the same with dollar, same thing as every country does. They give fake promises and make people believe that currencies that we have nowadays are backed by something big and reliable. But, in fact, all currencies are bubbles, inflated only by the trust of people in them.
The problem is, the most part of population will switch to Mericacoin and won't even try other cryptos. Even if the government tell them that it will keep their private keys for some serious reason, such as safety or, let's use the most popular reason - to fight terrorism somehow.
The only way to avoid such situation - to make everyone know that the main thing cryptocurrencies bring - total financial freedom, where your money are truly your's and no government, no department or service can touch them, block your accounts, take part of it to make you pay your taxes and so on.
I can definitely see where you’re coming from, but we already have a decade of crypto history that demonstrates people can be free and I don’t think propaganda is going to be able to erase that. There’ll always be fools that fall for it but I think a huge number of people aren’t going to buy it.
on the other hand, any news about regulations on cryptos influence the price and popularity. So, basically, governments can influence cryptos and they do it. And that's news only. What if someone starts some serious mass media campaign? The vast majority will fall for it.
At some point, this example shows that people still don't believe that they can be free.
https://ipfs.busy.org/ipfs/QmZm2d8m2TnSe8yF75ZXjf6Hb6oewtz5RzKYD9s3WRgLK2
▶ BITCOIN IS A SCAM SET-UP BY PENTAGON – HC ON DIEGO GARCIA ISLAND!!
https://busy.org/@motherlibertynow/bitcoin-is-a-scam-set-up-by-pentagon-hc-on-diego-garcia-island
Actually, if you check the FRS website and read few articles and compare them to the official texts about Bitcoin, there are some scary similarities.
But is it bad? Or old financial system is just trying to switch to something new?
FRS web site? The banking cartel wants to go digital. It will allow them to implement a global central currency controlled by AI, by a one world government. With quantum computers they can crack it. They say Bitcoin has no ledgers, but the creators who run the servers on Diego Garcia certainly have ledgers. They know where they are hiding their trillions in ratline money - all the Federal agencies involved in crimes and running illegal rat lines are hiding their money in Bitcoin. The FBI has 30% of it´s assets hidden in Bitcoin. The FBI is a private foreign owned corporation for profit with headquarters in France. Much of the money they get is via running ratlines for profit. See the George Webb videos on this.
This is very unlikely.
Speaking of hiding money, 2/3 of the world annual turnover of the money goes through offshores. Why would they invent something new, when the current scheme is working great? https://coinatory.com/2018/06/05/quantum-computer-not-deadly-for-bitcoin/
► Someone´s opinion does not make it very unlikely.
Fears that quantum computing will make the blockchain technology useless, are overexaggerated. This opinion was expressed by the representative of the American Institute of Economic Research Jeffrey Tucker in the article “The Threat to Bitcoin from Quantum Computing”.
In his opinion, this fear is based on ignorance and panic moods. The fundamental characteristic of blockchain technology, he believes, is the solution of problems through crowdsourcing, including security threats associated with quantum computing.
https://www.aier.org/article/threat-bitcoin-quantum-computing
In fact, I have testimony from an eye witness who himself saw a quantum computer crack Bitcoin.
And more:
https://ipfs.busy.org/ipfs/QmZm2d8m2TnSe8yF75ZXjf6Hb6oewtz5RzKYD9s3WRgLK2
▶ BITCOIN IS A SCAM SET-UP BY PENTAGON – HC ON DIEGO GARCIA ISLAND!!
https://busy.org/@motherlibertynow/bitcoin-is-a-scam-set-up-by-pentagon-hc-on-diego-garcia-island
The FBI is a private foreign-owned corporation with headquarters in France. It hides 30% of the money it earns from Uranium and other ratlines in Bitcoin. This can be proven also.
Also, the argument about hiding money in off-shore companies is a strong one, or appears to be, but is just another argument. The facts speak for themselves.
this might be happening right now. One of our analysts' opinion:
https://coinatory.com/2018/06/14/when-will-bitcoin-change-its-trend/
Precisely. See my comment here also:
https://busy.org/@coinatory/whycentralbanksdontcareaboutbitcoin-6yogtzyjh7#@motherlibertynow/re-coinatory-re-motherlibertynow-re-coinatory-re-motherlibertynow-re-coinatory-whycentralbanksdontcareaboutbitcoin-6yogtzyjh7-20180801t153328831z