News:- Central Bank can provide digital currency stability, but crypto is very unstable

Economic researchers at the Kill Institute Institute for the World Economy have identified digital currencies issued by a central bank as an opportunity for another stable financial system, while simultaneously cryptocrasosis has been rejected, reports of the Sixtagram of Deutsch today June 27 is.

Kill researchers have published digital or virtual currencies from Cryptokurus, such as Bitcouine in its report published on June 26, which will act as a guide for "monetary negotiations" in the ECON Committee of the European Parliament. According to the report, cryptokuria does not make viable alternatives for traditional central bank currencies:

"Currently, bitcoin-like cryptocryans could not supply traditional currencies for any significant degree. Available technologies face serious limitations regarding scalability, in particular, through cryptocourines, transactions now through traditional currencies. It will be extremely expensive to operate a medium portion of the house. "

According to the report of the Kill Institute, instead of being the means of exchange, cryptocoorsi and related properties are mainly used as vehicles for financial speculation. Since they were not a fixed value, they could not be considered rationally valuable, this can lead to strong prices fluctuations, which in turn would attract more bookmakers. The lack of regulation further enhances this effect through non-transparency.

The analysis continued, pointing out that digital currency is the central bank for the opportunity of representation, even if it is "disruptive" due to the traditional bank accounts of the value of the loss.

"To avoid recurring instability of the banking system, commercial banks will need to come up with deposits with more reliable funding sources as the partial reserve character of the current banking system can be a major source of instability, hence such a disruptive Change is not necessarily a bad development, but eventually it can pave the way for another stable financial system. "

Some global banks are already considering introducing their digital currencies like the Bank of Thailand and the Central Bank of the Bahamas. Even the Governor of the Bank of England, which is considered heavyweight in the international monetary system, said that the central bank was open for the idea of digital currency.