Content adapted from this Zerohedge.com article : Source
The New York Fed's admission last week that people would turn to cryptocurrencies if trust went out of the fiat system spurred another conversation.
Deutsche got involved in analyzing the situation as to whether people would embrace crypto-euors or not.
Central banks are looking into cryptocurrencies and the underlying distributed ledger technology, as they carry responsibility for issuing physical cash, overseeing and/or providing payment clearing and settlement systems, conducting monetary policy and safeguarding financial stability.
In the areas of payments and savings, digital cash would compete against bank deposits, physical cash and private cryptocurrencies to win over consumers.
Unless its use was strongly pushed by regulation, digital cash would need to convince users by offering better and more convenient payment solutions than other payment systems. In particular, it would need to match current low fee levels and high safety standards for regulated consumer payments.
In an environment of high trust in public institutions, consumers would probably not be concerned if digital cash offered little data privacy.
For savings purposes, consumers would simply base their choice between digital cash and bank deposits on the difference in interest rates.
However, in times of financial or political uncertainty, people may think beyond convenience and yield.
In case of financial turmoil, consumers can use central bank money – physical or digital cash – as a safe haven.
However, if fundamental trust in monetary and political stability were lost, people would probably turn away from any form of the sovereign currency in favour of other alternative assets or private cryptocurrencies.
Private cryptocurrencies are not a fad or a passing whim. They are here to stay. It is something the central banks of the world are going to have to deal with.
The present fiat system is one that is steered by the central institutions. Comparatively, cryptocurrency follows the distributed ledger technology which operates on a peer-to-peer basis. In the days of cash, this was the common method.
All this brings up the question of privacy. Central bank issued digital assets do not carry with it any anonymity. Cryptocurrency offers this to a much greater degree.
Why would anyone use crypto-euros?
We would use crypto euros for payments if they offered a higher service level than other payment options at comparable levels of cost and safety. With DLT still in its infancy and competitive private retail payment solutions available, this will hardly be the case. CBDC's chance of gaining substantial market share by catering to unserved payment needs is low given the popularity of established digital payment means and ongoing innovation by incumbent and new service providers. Moreover, it remains an open question whether DLT can deliver the same level of cost efficiency and safety as existing technical set-ups. For day-to-day use, privacy concerns have proven to be of minor relevance to consumers. So even if CBDC was designed with a high degree of anonymity, this would not be a competitive edge – at least not for legal transactions. Unless the acceptance of CBDC is pushed by regulation, CBDC is not likely to gain sufficient reach to become a competitive payment network.
But what about crypto euros for saving purposes? In an environment of popular trust in public institutions and financial stability, digital cash or bank deposits will be the most convenient options for consumers. The biggest difference between these two would be a potential difference in remuneration. The highest yielding digital money will simply be the most attractive.
However, in times of financial or political uncertainty, people may think beyond convenience and yield.
As long as there is "only" doubt about the liquidity of the banking system, physical and digital central bank money will be perceived as a safe haven until the crisis is resolved.
If fundamental trust in monetary and political stability is lost, though, digital cash will simply be sovereign currency. In order to escape it, consumers would have to turn to private cryptocurrencies or other alternative assets.
In conclusion, Deutsche Bank concludes, a compelling reason for consumers to switch voluntarily to crypto euros is hard to see – at least for the time being.
Until the SHTF and cryptocurrencies are the choosen vehicle.
Non-adapted content found at zerohedge.com: Source
Hah hah hah hee hee ho...
“If...”
Good one. Lol. XD
Thanks for sharing this @zer0hedge. I agree with this article; if tryst was lost in monetary and political stability, more people would turn to cryptocurrencies.
The real question in my eyes is should they, and when should they? I think that if a mass of people turned to cryptocurrencies within the next six months, it would be a mess for the cryptocurrency industry. The capability to support billions of people simply is not there yet.
I would like to see the industry mature over the next few years, allow the volatility to die down, then see mass adoption occuring. People in this industry are too quick to jump at an opportunity, without assessing the future risk of how it could impact the industry.
Either way, I hope that mass adoption occurs!
This will change the life of the nation and man
This technology is high quality
At first, the balksin caused a fuss, especially in the technology sector, but it has now spread to other sectors. The number of industries testing this technology is increasing in order to operate a more efficient, transparent and secure system, not to mention the remaining competitive current.
In contrast, the use of plocin technology will increase transparency and facilitate the detection of fraud in employee credentials. So, be prepared, no matter what your industry, the plucheen technique is likely to have a role to play in. Learn as much as you can about this technology, accept their changes and learn to play with the big players even if you are not yourself a great player.Hi @zer0hedge
I Expect UNEXPECTED change and NO Happy 2018 if you hold NO gold, silver or cryptocurrencies. The US Dollar, Bonds and Stock Markets will PLUNGE IN PRICE while God’s money, gold and silver and crypto will suddenly SPIKE into new highs. Yes I think I’m correct about crypto being as s safe heaven as well. Crypto will never be in a bubble, crypto will only correct itself. That’s the beauty of free decentralized market. When it comes to bitcoin, the difference between bitcoin and fiat is (both are not backed by anything,right?) fiat has unlimited supply, but bitcoin doesn’t and the price is going to go always up with corrections creating opportunities to get on the train and I thing that many countries including Germany are starting to realize it. The other issue is that people are ignoring what is going on in the currency market, what’s going on in the commodities markets, what’s going on in the bond markets. All of this stuff is flashing red inflation, at least the way it’s being measured by consumer prices.
I completely agree with you!
Cryptocurrencies and coin offerings, along with blockchain, are the enabling means for a new economy. They say it’s used for money laundering and criminal activity. But they don’t say it’s good for the people, that’s what they do, they are brainwashing us. Less than 20 years ago, most people would not have imagined that virtually almost all will go online. Germany, US and other countries are starting to realize how huge impact crypto and blockchain has. They just got used to it’s actualy them who creates and not the people. In this case the people were ahead of them and just like you mentioned they have to deal with it since crypto is here to stay.
Great post!
Look at Venezuela , similarly someday in future US dollar will crash too and then cryptocurrencies and gold, silver, platinum, copper and aluminum soda cans will become currency. With cryptocurrencies money in existence is all the money there ever will be in existence unlike fiat money which is infinite .Banks would not be able to loan something that doesn't exist.Banks would not be able to buy anything without creating their own money first.There would be no need for Central Banks, the root cause of instability.
Future is decided by youth and young generation trusts in cryptos . HODL !
Most of the security lies in the distributed nature of the blockchain.
If you want to secure your data, you encrypt. You make a backup copy. You make an offsite copy. Etcetera, etc.
The "blockchain" is a collection of parallel copies of an encrypted ledger. It's the equivalent of constantly backing up your data to hundreds of thousands - millions of offsite locations simultaneously.
ALL copies of the blockchain would have to be destroyed to truly destroy it. Only one copy could restore it. Two or more nodes, and transactions become possible. The internet isn't even necessary, only a network.
Blockchain is pretty robust, and about as good as it can get, in terms of recovering from a catastrophic disaster.
The most significant advantage of the Cryptocurrency from the real parities is that it is not affected by the economic situation of any country since it is not connected to the central bank of any country. It is also not a question of whether a cryptocurrency account is frozen or confiscated because it is not known to whom it belongs and is not monitored and monitored by a central authority. The fact that the confidentiality of identity information is not under the control of an authority makes the system open for any kind of illegal financial transfer.
Let's say you are going to make a payment and you want to do it with someone from CryptoCurrency. First you need to create a virtual wallet for the relevant CryptoCurrency. It is very important to encrypt the wallet because if it is not encrypted, it can become a wallet open to theft. After this step, it is now possible to send and receive CryptoCurrency. After completing these necessary steps and creating the virtual wallet, you can purchase this virtual money from one of the internet sites selling CryptoCurrency and place it in your virtual wallet and pay in this wallet. When you make such a payment, you can not track who, when, and how much you pay. In a similar way, if someone else pays you in this way, it can not be followed.
The use of CryptoCurrency is becoming increasingly widespread despite the fact that governments are approaching the cold due to the fact that they have established infrastructure for land money.
@zer0hedge..A friendly reminder that Pizzagate, Chemtrails, and Flat Earth are known to be bullshit stories designed by the US DOD to be used by the .GOV Troll Team, like our own gigadeath, to discredit alternative news sites like ZH.
I wish the US gov would do something useful with my tax dollars, like provide me with good data for over clocking various GPUs running on a variety a miner programs and MOBOs.
Anyone else running 1060s to mine Ether using ethOS and a Biostar?
My hash rates are all about 5 mh/s slower on ethOS than what is appearing for my worker on the pool, which is 24 mh/s avg over an hour. If true, this is very good, I know. But it took me a whole day, and half a bottle of Maker's Mark, to get here. I do admit it is quite fun.
If we can have a Federal Bureau of Prison Statistics, then why can't we have a Federal Bureau of Over Clocking Statistics.thank you for sharing
The current system costs too much per transaction. Banks can't afford computer networks and data storage centers.Deutsche Bank has no credibility. Banks couldn't afford silver and gold. Banks couldn't afford paper, copper, and zinc. Bitcoins are to banks as self-service gas stations are to gas stations. Or check-out-counters are to self-checkout. Banks and Governments will still take their cut. Our society is changing rapidly.. and blockchain is the bearer of truth that will dominate as the truth validator.
The fight indeed is going on between digital cash and bank deposits to win over customers. And for now, the public is not yet sensitized fully about the cryptocurrency market, which gives banks an upper hand. The banking system is all they have known about the financial system since the early stages of their lives. The public believes banks offer high safety for their payments, which they feel comes at low fee levels and they also offer more payment solutions, all in most cases at low interest rates for example loans. The trust in the banking system is still cemented in the public but any lapse in the banking system would give the people no choice but to turn to cryptocurrencies which people have as the top most alternative to the banking system. Financial and political uncertainities indeed would trigger this. But I feel it's not going to take long for people to start having more trust in cryptocurrency over the banking system. Blockchain technology is growing at a very fast pace, more and more people getting aware about it with the recent rise in prices that have turned many into billionaires in a short time playing a role in this awareness campaign. I believe with cryptocurrency, a system that will block the market from being used for illegal and illicit activities is getting worked on. This will win more trust from governments and the public in general.. And we shall see cryptocurrencies proving a real challenge to the banking system in terms of attracting more customers.
As you know in the crypto money market, there are serious increases or decreases in certain intervals. Apart from these price changes, it is a positive development that the crypto money starts to be used gradually in daily life. We can show that some big banks have banned the purchase of crypto money by using credit cards, some countries have taken regulatory steps towards crypto paralysis and some are thinking about throwing out, as we will exemplify how the crypto money is shaped in the real world, in Iceland, which will consume enormous amounts of electricity.
"One of the areas where we will work very closely with the G20 is that it will not turn into Swiss bank accounts," said Mnuchin, who points out that the G20 is ready to take control of digital currencies. he used expressions.
It sounds like Bitcoin could become the new gold. In times of trouble, investors have traditionally flocked to gold as a safe store of value. When people don't trust the central banks, they turn to alternatives. And now cryptocurrencies are a potential alternative.
Upvoted ☝ Have a great day!
I tweeted this one when I saw it. I feel like it is good news whenever the big banks talk about crypto. They are behind the curve and scrambling now in my opinion, which makes me very happy to be steeming :)
The last crisis that we lived was probably the first financial problems that the economy's faced with the presence of BTC and cryptocurrencies, but it was too early for consumers to see it as a secure alternative to the problems we were into. But political issues exist right at this moment (example, Venezuela) and we are facing a growth in cryptocurrencies which may lead to some of the countries with problems to adopt a digital currency.
Consumers wont switch voluntarily to crypto because they are not informed and this world/technology is not super easy to understand and dominate.