I'd love to have a discussion about this. Just saw this presentation:
http://www.finovate.com/asia13vid/klickex.htmlThey'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?
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So what would happen, if the current network structure would be superseded by a crypto-based infrastructure?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).
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