[2018-03-14] Central Bank Digital Currencies To Destabilize Global Economy

[CryptoBry]

While the central banks of some countries are hoping to be a part of the virtual currency revolution, the Bank for International Settlements (BIS) is concerned about the repercussions of going digital.

A report written by Klaus Löber, who is a Senior Advisor at the European Central Bank (ECB) and Aerdt Houben, who is the Director of the Financial Stability Division at De Nederlandsche Bank (DNB), details the negative impact it could have on the economy.

According to this report, these virtual currencies could become direct competition for traditional fiat, which could lead to an increase in interest rates.

Source is here...

Those governments who are planning to introduce their own state-backed and issued cryptocurrencies should be thinking twice as this can be affecting the global order. Just because they could not totally stopped the real cryptocurrency movement does not mean that they should be introducing their own.

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[Irvinn]

It is understandable that the crypto currency is a more advanced technology than the current system of financial calculations and will therefore compete very effectively with the usual currency fiat. Many people switch to the use of crypto-currencies and increasingly turn to banks. Banks because of this lose their customers, and hence the profit. In order to interest customers, they will be forced to raise deposit rates and provide them with other benefits. I think these are very good facts.

[99btcwah]

Fact - Central bank actions have led to several economic destabilization in the past. The allure behind bitcoin is that it is not under the control of these central bankers thus people who understand the destructiveness of the central banker's manipulations find refuge in it. Instead of money falling under the whims of these self-serving bankers (the Federal Reserve is a private bank-despite the name, and they act to protect their own interest, never that of the general population), bitcoin lies beyond their control and has become a democracy of sorts. And they don't want that. Any attempt to challenge the central banker's hold on their money making powers would always be attacked and condemned by them.

I say let them blabber all their fears, threats and lies. They may be the ones in power now but the situation can be reversed if we, people who would like to see bitcoin grow, would use the power that we have in our hands. We have bitcoin and we can make it mainstream and leave the worrying of the dollar and the other currencies behind. Let us make the push for bitcoin to be the default currency for day to day transactions. Let us not be so anchored in the old ways and be brave in embracing the new frontier, unshackled this time from the debts and encumberances brought about by the central bankers unto us.

[Variogam]

Before Bitcoin can become direct competition for traditional fiat, scaling need to be solved. Bankers and their fiat scam is safe, for now.

[Theb]

If what they mean by destabilization is making poor people to middle class, and middle class family to becoming rich then they are correct. Cryptocurrencies as a form of investment will make a lot of people change their lives in a good way. These cryptocurrencies are injecting new money to their economy which will result to a inflow of money coming from different classes of citizens. To keep it simple, people earning from cryptocurrency must be viewed in a good way as it will have a long term positive effect on their country's economical growth.

[Coffee135]

While the central banks of some countries are hoping to be a part of the virtual currency revolution, the Bank for International Settlements (BIS) is concerned about the repercussions of going digital.

A report written by Klaus Löber, who is a Senior Advisor at the European Central Bank (ECB) and Aerdt Houben, who is the Director of the Financial Stability Division at De Nederlandsche Bank (DNB), details the negative impact it could have on the economy.

According to this report, these virtual currencies could become direct competition for traditional fiat, which could lead to an increase in interest rates.

Source is here...

Those governments who are planning to introduce their own state-backed and issued cryptocurrencies should be thinking twice as this can be affecting the global order. Just because they could not totally stopped the real cryptocurrency movement does not mean that they should be introducing their own.

Of course, banks are used to lending to enterprises at our expense. Because of the low rates were happy with all but us. Interest on deposits is enough at best to compensate for the cheapening of our savings from inflation. Bitcoin gives us the opportunity to store savings outside the banking system. Banks do not want to lose free access to our money.

[Carlton Banks]

If what they mean by destabilization is making poor people to middle class, and middle class family to becoming rich then they are correct. Cryptocurrencies as a form of investment will make a lot of people change their lives in a good way. These cryptocurrencies are injecting new money to their economy which will result to a inflow of money coming from different classes of citizens. To keep it simple, people earning from cryptocurrency must be viewed in a good way as it will have a long term positive effect on their country's economical growth.

Yep, as soon as incumbent (soon to be legacy) financial system notices innovation that cuts any fellow gang member out of their respective monopoly, they all start throwing around perjoritives such as "scam", "criminals", "terrorists" etc.

The problem, of course, is that the only concrete evidence in existence condemns central banks, consumer banks & the financial markets of these slurs. Even when cryptocurrencies do see some (any) actual proven cases of these accusations, it's difficult to see how the financial system could ever claim to be somehow less guilty of the exact same legal infractions.