Why Governments Might Join the Cryptocurrency Craze

[alyssa85]

https://www.bloomberg.com/news/articles/2018-02-12/why-governments-might-join-the-cryptocurrency-craze-quicktake

With crypto mania sweeping the world, a handful of countries have stirred at the possibility of issuing their own virtual currencies based on blockchain, the technology behind Bitcoin. For now, the idea seems most popular among autocrats looking to evade or undercut international sanctions that are enforced, in part, through the global banking system. But advocates of government-backed cryptocurrencies (so-named because they rely on cryptography for security) say that if the movement takes hold -- which is by no means assured -- it could irrevocably change the international monetary system as we know it.

Russia’s central bank plans to talk to countries including Brazil, China, India and the five former Soviet republics about creating a supra-cryptocurrency that could cover countries with 40 percent of the world’s population. People’s Bank of China Deputy Governor Fan Yifei wrote an article broaching the possibility of a digital currency it would issue with Chinese commercial institutions. In Sweden, where use of cash is vanishing, the central bank is investigating issuing its own digital currency, the E-krona, out of concern that widespread use of other virtual currencies controlled by private actors could harm competitiveness.

[bilal_jan321]

https://www.bloomberg.com/news/articles/2018-02-12/why-governments-might-join-the-cryptocurrency-craze-quicktake

With crypto mania sweeping the world, a handful of countries have stirred at the possibility of issuing their own virtual currencies based on blockchain, the technology behind Bitcoin. For now, the idea seems most popular among autocrats looking to evade or undercut international sanctions that are enforced, in part, through the global banking system. But advocates of government-backed cryptocurrencies (so-named because they rely on cryptography for security) say that if the movement takes hold -- which is by no means assured -- it could irrevocably change the international monetary system as we know it.

Russia’s central bank plans to talk to countries including Brazil, China, India and the five former Soviet republics about creating a supra-cryptocurrency that could cover countries with 40 percent of the world’s population. People’s Bank of China Deputy Governor Fan Yifei wrote an article broaching the possibility of a digital currency it would issue with Chinese commercial institutions. In Sweden, where use of cash is vanishing, the central bank is investigating issuing its own digital currency, the E-krona, out of concern that widespread use of other virtual currencies controlled by private actors could harm competitiveness.

This is indeed a very positive development, so far news coming from central banks regarding crypto are not very encouraging except Japan.

[candy27]

They'd have to allow these coins to be listed on exchanges, otherwise they'd be worthless.

I wonder how eager people are to use govt backed coins?

[trecore4]

So its kind of all the positive usage of the blockchain technology which is driving the government very crazy. But however, some of the countries are not in the favour of this while those who are in the favour of this one are taking it very seriously. This will surely change he face of the world however it will need huge efforts, time, planning so that everything can be properly managed. Yes, there are few countries which are taking he blockchain technology usage to whole new level such as India. This country is going to explore the usage of blockchain for the purpose of giving decentralised education and certification process. That is really interesting and the idea is just very thoughtful. If considered such approaches then yes we have the whole new crypto currency craze amongst the government of different countries.

[Doge dealer]

This was one of their major concerns from the beginning how to maintain their control and power in light of the revolutionary technology that crypto currencies are based on .It would now almost be impossible to restrict countries that they deem to be unfriendlies from doing transactions internationally ,as with crypto currencies the current financial structure is by passed to a major extent, they would no longer to freeze peoples investment as these would be decentralized and not in any bank account where it can be frozen etc. It is becoming clear based on the posture most governments are now taking that the realize and understand there is no stopping this technology so most have started to devise ways of joining this market even if its playing with the idea of creating their own crypto currency. The European Central Bank has reportedly stated that most European banks are now considering holding crypto currencies this is major as before this none of them even had a real opinion much more for this idea to become so entrenched as to now have central bank president Mario Draghi weighing in with this glorious news.This is more proof that these types of currencies are the future.

[bitart]

They'd have to allow these coins to be listed on exchanges, otherwise they'd be worthless.

I wonder how eager people are to use govt backed coins?

I'm just wondering, what is the reason to develop a coin for the government? What will be the difference between the new government issued crypto coin and the current digital fiat? Maybe they plan to leave out VISA and MasterCard from the payment chain and governments want to make some profit as their own payment processors. Or, they want to leave out the banks as well, to take their profit as well, because they will be able to handle the payments directly with their new blockchain based government coin?

[LeonardoDiCrypto]

I think governments would use cryptocurrencies especially because they can be traced very well, and they love total control over what their populations are doing. When they'll adopt them, it will be very much different than now.

[coin163]

https://www.bloomberg.com/news/articles/2018-02-12/why-governments-might-join-the-cryptocurrency-craze-quicktake

With crypto mania sweeping the world, a handful of countries have stirred at the possibility of issuing their own virtual currencies based on blockchain, the technology behind Bitcoin. For now, the idea seems most popular among autocrats looking to evade or undercut international sanctions that are enforced, in part, through the global banking system. But advocates of government-backed cryptocurrencies (so-named because they rely on cryptography for security) say that if the movement takes hold -- which is by no means assured -- it could irrevocably change the international monetary system as we know it.

Russia’s central bank plans to talk to countries including Brazil, China, India and the five former Soviet republics about creating a supra-cryptocurrency that could cover countries with 40 percent of the world’s population. People’s Bank of China Deputy Governor Fan Yifei wrote an article broaching the possibility of a digital currency it would issue with Chinese commercial institutions. In Sweden, where use of cash is vanishing, the central bank is investigating issuing its own digital currency, the E-krona, out of concern that widespread use of other virtual currencies controlled by private actors could harm competitiveness.

They are just love what's blockchain future not the coins/token.
Blockchain will be very good for governance and as it is decentralized it will have potential and adoption and support from many industry.
That's bright future for cryptocurrency certainly 

[jseverson]

I'm just wondering, what is the reason to develop a coin for the government?

Probably this:

For now, the idea seems most popular among autocrats looking to evade or undercut international sanctions that are enforced, in part, through the global banking system.

You can't sanction what cannot be censored after all. I suppose they could already use the existing cryptos at this end, but that could be a pain without actually being able to retain control of them. What I don't understand at the moment is how they will be giving their cryptos value. I know they will back their value in some way, but will they be 1:1 with their fiat counterpart? The whole concept just sounds really messy.

[J Gambler]

https://www.bloomberg.com/news/articles/2018-02-12/why-governments-might-join-the-cryptocurrency-craze-quicktake

With crypto mania sweeping the world, a handful of countries have stirred at the possibility of issuing their own virtual currencies based on blockchain, the technology behind Bitcoin. For now, the idea seems most popular among autocrats looking to evade or undercut international sanctions that are enforced, in part, through the global banking system. But advocates of government-backed cryptocurrencies (so-named because they rely on cryptography for security) say that if the movement takes hold -- which is by no means assured -- it could irrevocably change the international monetary system as we know it.

Russia’s central bank plans to talk to countries including Brazil, China, India and the five former Soviet republics about creating a supra-cryptocurrency that could cover countries with 40 percent of the world’s population. People’s Bank of China Deputy Governor Fan Yifei wrote an article broaching the possibility of a digital currency it would issue with Chinese commercial institutions. In Sweden, where use of cash is vanishing, the central bank is investigating issuing its own digital currency, the E-krona, out of concern that widespread use of other virtual currencies controlled by private actors could harm competitiveness.

The government can know and be able to join this craze by knowing that the community is able to use and be effectively transacting in it witout raising any other flags. That is the power and might of bitcoin which is for me, and that is kts ability to be a great influencer especially when it comes to other people seeing the results come to fruition on your life

[HasHe]

They'd have to allow these coins to be listed on exchanges, otherwise they'd be worthless.

I wonder how eager people are to use govt backed coins?

I'm just wondering, what is the reason to develop a coin for the government? What will be the difference between the new government issued crypto coin and the current digital fiat? Maybe they plan to leave out VISA and MasterCard from the payment chain and governments want to make some profit as their own payment processors. Or, they want to leave out the banks as well, to take their profit as well, because they will be able to handle the payments directly with their new blockchain based government coin?

We all know that USD has been used as the global reserve currency.Countries like china,russia have been trying for years to avoid using USD while importing goods and instead to use their own currencies.But it was not fully successful as each country had their own fiat currency.Now russia and china are seeing this crypto technology as a blessing to just avoid USD.So they are trying to issue their own crypto currencies or to create a common crypto currency for all the friendly currencies.By this way,they hope that they could make international trades even without using USD.

[bitart]

Seems a good reason...

I'm just wondering, what is the reason to develop a coin for the government?

Probably this:

For now, the idea seems most popular among autocrats looking to evade or undercut international sanctions that are enforced, in part, through the global banking system.

You can't sanction what cannot be censored after all. I suppose they could already use the existing cryptos at this end, but that could be a pain without actually being able to retain control of them. What I don't understand at the moment is how they will be giving their cryptos value. I know they will back their value in some way, but will they be 1:1 with their fiat counterpart? The whole concept just sounds really messy.

If they create their own crypto, they can back the value like they back the value of the digital money (money at bank accounts). If they can control the amount of their crypto, that'll work as the current digital money. Now government contol the banks to limit the amount of the money in the circulation, so if they can control the amount of the crypto coins, that's all good for them. The new crypto will only be a new route for the money in the circulation (Cash, bank system, new crypto system). If governments will issue the cryto money, they can leave out the banks, so it can affect the profit of the banks (they will not be happy).

[Umkar]

Russia, India, China and other countries initially planned to create their own national centralized crypto currency. And it was discussed for a long time. Why did they decide to unite and create a common centralized crypto currency? Can they be sure that their national digital coins will not be in demand and thus want to expand the circle of circulation of such a common digital coin? Let, of course, experiment. If this project fails, it will be a big victory for decentralized crypto currency. I hope that it will be so.