Bitcoin Forum

I'd love to have a discussion about this. Just saw this presentation:
http://www.finovate.com/asia13vid/klickex.html

They're calling it Cryptocurrency 2.0, and it's supposedly asset-backed, though it seems like the asset is local currencies. What's significant about this is that it seems like it has the support (and backing) of the central banks. So it looks like this is the direction they want to go in.

What do you guys think about this? Does it have a chance to succeed? When launched, how will Bitcoin fit into that system?

Nobody wants to talk about this? The move towards a government-backed Cryptocurrency sounds like a pretty big deal to me.

Defeats the purpose. We don't want banks/ the government controlling our money anymore.

Have a look at Richard Gendal Brown's "A simple explanation of how money moves around in the banking system"
http://gendal.wordpress.com/2013/11/24/a-simple-explanation-of-how-money-moves-around-the-banking-system/

• it's difficult
  there's always the counterparty risk you have to factor
  and so it becomes slow and it's expensive
  

So what would happen, if the current network structure would be superseded by a crypto-based infrastructure?

• Maybe, they system becomes less complicated.
  Crypto contracts might eliminate counterparty risks.
  Interbanking would become faster and less expensive.

It definitely could be interesting. It might even have some really helpful legal implications for Bitcoin.

Besides that, it's really hard to tell what their Global Stability Dollar (GSD) really is. There's no information at all to be found anywhere. Is it more like a Ripple-clone or a distant Bitcoin-relative, what assets are backing the GSD, in the video, they talk about seeding it with 10.000 Singapore Dollars, what happened since?

They claim it's for "institutional and retail use" , but as I just wrote their MD: "Unfortunately, I cannot find any other information on the state of the GSD, its current exchange rate, how the asset-backing is constructed, and what kind of cryptographic solution is securing the network."

Auto responder says, he's "scheduled for heavy travel this week", so this might take a while.

So maybe everything developed a little bit differently. A negative scenario could look like this: internationally backed remittance provider looks into crypto currencies to improve his international network, presents his new crypto currency to a bunch of innovative bankers and gets a slap on his wrist.
Let's see.

Besides: Global Stability Dollar (GSD) is a really tacky name (but Unobtanium was already taken).

LOL noobs.... ;D

If its backed by ANYTHING its not decentralized and it will never be like blockchain. Good luck with that wish.

It's supposed to be centralized though. That seems to be the point behind it, and is why the central banks are supporting it.

Exactly, as the quote says here on BCT, Bitcoin (and others) is the separation of money and state (in most countries also banks).

Klickex sounds like another Ripple...bad cryptocurrency....good investment though I think if you want to make a good ROI.

I have not seen any code or white paper of how it scales compared to BTC, but it's supposed to scale much better.

Banks know they cannot compete with crypto currencies both in cost and time to transfer money electronically.

So this is central banks fighting for their financial lives...using similar technology to compete with respect to cost and time. 

IF accepted and adopted by the central banks, we'll probably see BTC/USD surpassed by BTC/KLX on all major BTC exchanges in volume.

And it will probably be the main gateway to move between the crypto economy and the fiat-based economies.

It indeed seems to be like a Ripple specifically between banks, with each bank having its own gateway to the crypto economy.

Yeah, exactly. And also the company's business is currently to do money transfers between different countries for small transactions. So if this gets widely adopted, which it might considering the central banks are behind it, then it will also be used as a currency in and of itself.

I had a nice little mail exchange with their MD. He seems nice enough, but can't disclose anything yet (but sounds eager to do that as soon as possible).
It's currently interbank and financial institutions only, but this might change.


True. This could be huge.
Definitely to be watched.