Decentralized digital currencies in the hands of central banks – A new world order

Rick Steves

The Nederlandsche Bank’s annual report published in March 16 had a short remark about intentions of developing its own digital currency based on distributed ledger technology in 2016. Tony Richards, Head of Payments Policy Department at The Reserve Bank of Australia, said in a conference that he expected an eventual digital version of the Australian […]

Decentralized digital currencies-

The Nederlandsche Bank’s annual report published in March 16 had a short remark about intentions of developing its own digital currency based on distributed ledger technology in 2016.

Tony Richards, Head of Payments Policy Department at The Reserve Bank of Australia, said in a conference that he expected an eventual digital version of the Australian dollar, issued by the central bank “with distribution and transaction verification by authorized entities, which might or might not include existing financial institutions”, accepting a world where “the digital currency would presumably circulate in parallel, and at par, with banknotes and other existing forms of the national currency.”

In his opinion, well-established, low-inflation national currencies are not threatened by privately-established virtual currencies in respect to individual economies, but cyber security and cryptography risks will delay full-scale issuance in any country.

The PBoC has also made public statements regarding digital currencies, having revealed in a seminar held in January of intentions of launching their own, cooperating with the financial and technology sectors to develop research. “We think, as a legal tender, digital currency must be issued by the central bank. The issuance, circulation and transaction of digital currency will follow the same management principles of traditional currency”, said PBoC Governor Zhou Xiaochuan in the conference, also stating that “a balance needs to be struck between protecting privacy and cracking down on illegal activities”.

“At the current stage, the central bank’s major goal of issuing digital currency is to replace the physical cash so as to lower the costs of issuing and circulating traditional paper money and to improve the convenience”, concluded Mr. Xiaochuan.

This month, FinanceFeeds reported the arrival of a new digital currency, RSCoin. Developed by the University College of London (UCL), it is different in the way that its purpose is to be adopted by central banks, “while still maintaining the transparency guarantees that have made fully decentralised cryptocurrencies so attractive.”

RSCoin would allow central banks to have precise control over the money tap and track counterparty liabilities automatically, enabling a quick regulatory action. Such technology, whether RSCoin or other distributed ledger, might also centralize control of money creation, disempowering banks.

The underlying architecture of distributed ledger technology, blockchain-alike, has potentials not only for the future of money, but also for the future of networked cooperation. Decentralized topologies and non-discriminatory protocols are being replaced by recentralized infrastructure by global corporations and now central banks, which means that whoever controls the data center has disproportional power over communications, politically and economically.

Read this next

Retail FX

Banxso announces 8.7% interest rate on deposits in South Africa

“With Banxso, they can enjoy the benefits of both worlds – earning competitive interest and having the freedom to trade, all within the same platform.”

Industry News

FINRA to publish transaction details in U.S. Treasury securities

“Consistent with our longstanding practice, FINRA is introducing greater transparency in a calibrated and careful manner, benefiting liquidity and resilience in this critical market while also mitigating potential information leakage concerns.”

Institutional FX

OpenYield launches “cheap and easy” fixed income trading for brokers

“We’re on a mission to make bonds cheap and easy to trade, and are excited about the opportunity to build generational capital markets infrastructure.”

Digital Assets

Sumsub and Mercuryo publish a guide for VASPs: “Mastering Travel Rule Compliance”

“At Sumsub, we’ve concentrated our efforts on filling the gap in understanding the complexity of Travel Rule regulation and helping organizations find the best solution to stay safe and compliant while minimizing costs and avoiding potential risks of non-compliance. This guide we created with Mercuryo, our trusted partner, is the ultimate navigation tool all VASPs can consult.”

Digital Assets

Bitget Wallet Leads with Record Swap Volume & New Crypto Innovations

This week, Bitget Wallet achieved a milestone by surpassing Metamask with a record 388,757 Swap order transactions, securing the global lead. The significant 7-day trading volume, almost 68,000 more than its rival, underscores its liquidity and user trust. This robust activity signals Bitget Wallet’s prominent role and reliability in the dynamic crypto market.

Digital Assets

Embarking on a Digital Currency Journey

Imagine you’ve stumbled upon a treasure map, leading you to untold riches hidden in the vastness of the internet. Instead of gold coins and jewel-encrusted goblets, this treasure comes in the form of digital currencies, the modern-day loot coveted by many.

Reviews

Traders Union Experts Share The Trading Analyst Review For 2024

Navigating options trading in rapidly shifting markets poses a considerable challenge. This is where options trading alert services become invaluable. They aid traders in keeping abreast of evolving opportunities and market trends. In this assessment, Traders Union experts scrutinize The Trading Analyst alert service to ascertain its efficacy. 

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

<