Central Banks Centralize for Talks
If Bitcoin succeeds, central banks have failed. A power grab of our entire economic system, skeptics of strong dollar status seek to decentralize payment transactions and remove government oversight.
That would put the powers that be out of a job and open to door to shady dealings, so it’s no surprise that regulators have clamped down hard on these bubbly, “faddish” coins. Crypto crazies have been accused of seeing what they want to see. But that door swings both ways!
The invention of Blockchain needs judging separately from the application of Blockchain. Central banks could easily be accused of not seeing what they don’t want to see, as no matter how hard they look, they remain shy to praise a single aspect of the technology. However, Facebook’s attempt at Libra last year really upset the applecart and upped the pressure.
Now, six central banks are grouping to “study the merits of central-bank backed digital currencies (CBDC).” The participants include the central banks of the eurozone, Britain, Japan, Sweden, Canada, and Switzerland. The group will be co-chaired by ECB foot soldier Benoir Coerure and BoE (Bank of England) Governor Jon Cunliffe.
They’ll mull over information sharing and transparency first, as that’s a deal-breaker. Then, everything from technical design to useful and appropriate applications will be discussed. The outcome of the investigation will be massive for Bitcoin and the crypto world, one way or another.
A CBDC would validate most spin-off cryptocurrencies and raise their prices in the short-term. Over the longer-term, however, a CBDC could blow them all out of the water. It’s simply unrealistic to compete against a state-backed project, so it’s going to be up to another Nakamoto to keep the crypto world evolving and to create disruptive tech to keep giving governments a hard time. That’s what this is all about, isn’t it?