Central Bankers Explore Response to Bitcoin: Their Own Digital Cash
http://www.wsj.com/articles/central-bankers-explore-response-to-bitcoin-their-own-digital-cash-1449657001Amid the rising popularity of bitcoin and other private digital currency technologies, central bankers around the world are studying the possibility of issuing virtual money backed by the government itself. The transformation could cut costs across the payment system and give authorities more control over their money supply—but it may also raise security and privacy concerns.
To date, no central banks have embraced issuing digital versions of their fiat currencies. But the prospect is gaining steam as officials around the world begin to view a mostly digital payment system as inevitable.
“We have to envision a world in which people mostly use e-money,” Carolyn Wilkins, senior deputy governor of the Bank of Canada, said in a Nov. 13 speech. “We need to anticipate this and manage the risks and benefits that could arise.”
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