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Title: [2018-12-27] The Fed wants no part of a national cryptocurrency Post by: gentlemand on December 29, 2018, 02:33:54 AM https://qz.com/1500794/the-fed-wants-no-part-of-a-national-cryptocurrency/
The Fed may not be the most popular of folks around here, but they do appear to have more of a grasp of the essence of cryptocurrencies than most of the posters on here who are only too happy to roll out the brain dead 'centralbankcoin will KILL Bitcoin' trope on a near daily basis. "they noted, a central bank cryptocurrency isn’t really a crypto-currency at all. If it’s not run on a “permissionless” network—with nodes free to join or leave as they wish—then effectively, it’s just centrally-managed electronic money, with an inconvenient blockchain component. “Once we remove the decentralized nature of a cryptocurrency, not much is left of it.” Berensten and Schar observed that such centralized electronic money doesn’t even require a blockchain. In fact, “the technology for issuing virtual money in a centralized way existed long before the invention of the blockchain.” They concluded, “cryptocurrency is still a very young technology and there are large operational risks. Overall, we believe that the call for a ‘Fedcoin’ or any other central bank cryptocurrency is somewhat naïve.” Couldnae have put it better myself. |