Bitcoin Forum

I read this very interesting article with a new thinking on the topic why central banks will fail with their attempt at digital currencies.

Why Central Banks Will Fail at Digital Currency
Around 100 central bankers and regulators from around the world came to the Federal Reserve (the organization that inadvertently caused the creation of bitcoin) last week in Washington, DC, for an event titled "Finance in Flux: The Technological Transformation of the Financial Sector".
Full article (http://www.coindesk.com/central-bank-fail-digital-currency/)

All banks already have their digital currency or digital form of fiat as online banking. Now some banks are looking to use decentralized ledger systems to record all bank transaction in block but without any reward or decentralized authority. They may only adapt technology and ledger system of blockchain.

They will have a huge disadvantage when competing with bitcoin and they just don't seem to get it. Bitcoin's main advantages are because it is an open source, distributed network, and beyond the control of any entity. The plans I have seen banks pursue have them in control of distribution, production, and ownership. So they are just like bitcoin except that the bank will decide who gets them, how they can be used, where they can be used, how many will be produced, what the price will be, and these rules can change whenever the bank feels like it.

You have to be a sucker to use bank coins. Seriously, only a complete fool would chose their coupons over the universal money of bitcoin.

In my opinion banks digital currency will fail because central banks don't want a decentralized trusted system, they want a digital coin that they could control, move and change if its needed.

Central banks are behind on this technology. Also, the ones that are teaming up to make their own blockchain will realize that it's not the same as the bitcoin blockchain. They are making one that isn't an open ledger, it's a closed ledger so it is fundamentally different and can't replace bitcoin.

I am sure Venezuelans will trust a central bank coin.  ???
Institutions are only as good as the people that run them, and central banks are no different. Bitcoin's appeal is in its decentralized nature.

The reason why central banks will fail at digital currency is even simpler: Central bankers are not needed for the system to operate at all. Introducing central bankers to cryptocurrencies is absurd and overrides the very reason of why they were created in the first place. Bitcoin works as a self-regulating system, spitting into the face of all the artificial theories constructed to justify an inflationary fiat regime to give power to the bankers.

It seems that these ladies and gentlemen have yet to understand the simple fact that their services have become worthless and there's nothing they can do about it. On an individual level it's kind of sad, because it is truly a rude awakening for these people that are accustomed of feeling important... but it's great news for the society as a whole. No more interventionist lunacy that destroys the livelihood of the citizen only to protect the special interests of a chosen few.

ya.ya.yo!

There simply is no reason for there to be a cryptocurrency made by banks. No reason at all. The fiat system they have is sufficient and works mostly in their favour. Having a cryptocurrency is completely useless for banks and won't make any sense, and it would end up costing them more than it would generate in value for them.

To add to your opinion the banks will fail at Digital Currency lies in the concept of Decentralization, decentralization means no center, to go away to the center and that center is the banking system. Bitcoin is a revolution to banking system it is hard to control and be monopolized.

I agree with you two. In addition to that, banks will fail at Digital Currency because it will just ruin their budget in controlling the price of the digital currency, and in the end they will discontinue it.  ;D

Central banks have functioned adequately for hundreds of years without cryptocurrency. I think the revolutionaries are getting a bit too caught up in their own hype. Finance is based on trust. Why would bankers trust cryptocurrencies managed by unregulated, anonymous people?

Central banks already have a bunch of digital currencies. But they're for big transactions, not for the microtransactions of the masses. It makes no sense to claim that digital currencies they've been using for years will fail.

They don't need cryptocurrencies. Banks know they can benefit from better encryption and digital processes. But none of that requires cryptocurrencies.

True banks don't need cryptocurrencies for what they wanted is centralization(central authority).  They already established their rule, why bother to change it for their own demise?  And let us not forget, Bank organization have far more professional programmer that can code and decode programs, it's that this two entity banks and the idea of decentralization is just two opposite pole that always repel each other.

I think they are fail because they are both the same but the differences is bitcoin price is increasing..
Banks can do transfering money online or paying something online using your credit cards or bank account online..
And they are not trusting bitcoin because many people are using bitcoin anonymously.. they are afraid of fraud and hacking..

Digital currency and decentralized currency are two different things and when bank will relaese their own crypto coin than they will only adopt ledger and security system of blockchain technology and those coin will be centralized one bank by real fiat in bank.

The difference is decentralization, not increasing price.
Increasing prices is just one of the side effects of Bitcoin in its current stage of life.  :)

A very interesting article. I knew about the big bank convention they had about "blockchain technology" and jsut thought "Well if a Bank creates an altcoin, what is the point?" It's just literally a way of them transferring already existing money by creating a different asset to act as a kind of "boat" and so the bank would be the exchange, miners, creators and everything. And then you think about all the different banks with different coins...that makes no sense. The entire government would have to make a coin in order for any of it to work and that already defeats the point in the first place. The government would never make a second currency...

Lol a centralized bank ran fiat scam coin. If and when those come out we can no longer even be made at premine scam altcoins because that will just take the absolute cake in terms of shitcoins. No way anybody would use a random bank coin imo

Of course they will fail they cant manipulate and make money out of thin air. They need to mine to be able to get a digital currency. Thats how I think it goes.

They will fail because they have to pay their employees. Miners also have to get paid for the transactions, but it is almost nothing compared to what banks ask.

Bitcoin is a huge threat to banking system but if banks and govs decide to fight bitcoin i think they will win. Bitcoin is alive at the moment because they let it.

the simple reason it's because their altcoin are centralized, not a true altcoin imho, not like bitcoin, so they will fail miserably, because they will not be so different than fiat

I believe that it will be bloody when the time comes that government will try to stop the usage of bitcoin. Its still hard to decide who will win on each side, many people will fight for bitcoin's usage.

As I have said before, you cannot have blockchain without bitcoin, and this article by professor Saifedean Ammous, published in the prestigious American Banker, expounds this fact nicely.

"Men who try and separate blockchain from bitcoin are inevitably software vendors desperately trying to sell their services, trying to separate the inseparable because they can’t come up with business models where they interact directly with bitcoin. They also tend to be statists with a fervent belief in the absolute authority of government and implicit legitimacy of the money it mandates everyone accept in payment."

This is the answer on many threads here, he found simple words to explain why bitcoin have a future, and why trols are trolling.
For now bank sector is without answer, but they will try something for sure. Its just question when and what, probably they already have plans.

My simple reason the central bank will fail in the digital currency, it is because of the attitude of those who had rejected the existence of bitcoin.

Well it probably just means instead of big exchanges we will have to get our Bitcoins from community members through paypal or something. That will be interesting because the price data etc. Will not really be known then haha which does complicate things. But a website will probably open to help us.

Did you read that Canadian central bank has launched his demo of blockchain canadian dollar
Central Banks with his priinting are going to the past,nobody trust them anymore

Saifedean Ammous never said that you cannot have blockchain without bitcoin. His article neither says that nor implies that:  http://www.americanbanker.com/bankthink/blockchain-wont-make-banks-any-nimbler-1079190-1.html

His article merely claims that any non-bitcoin blockchain would be "extremely costly and inefficient." That opinion may or may not be accurate. But you keep putting words in his mouth completely different from what he said.

You also quote this:
But those aren't his words either. That quote is from some writer at Coindesk: http://www.coindesk.com/central-bank-fail-digital-currency/

Contrary to that quote, there are many examples of non-bitcoin blockchains. Other cryptocurrencies use blockchain. Anybody can use Google to identify other existing uses for blockchain beyond cryptocurrencies.

Look, professor Saifedean Ammous doesn't have a monopoly on opinions about blockchain. And it's not mature that you say "trols are trolling" just because people disagree with you.

Because some other countries sees it as illegal maybe thats the reason why government dont look bitcoin as their modern digital currency but if they see the full potencial and market of this coin surely government will create their ways to control the blockchain or make their own network, and surely people will keep fighting for bitcoins existance in near future.

I am sure they are making plans or getting a group to deal with this or they will be left behind. They will need to upgrade and get a better choice rather than separating it. If they want their own then they better hurry getting another satoshi like brain.