Do we Need Central Banks?

[Sexie]

Well, central banks and fiat currencies are only a pretty new concept to humankind. The economy, as well as the currency, can definitely function without a central bank, as demonstrated by the days where paper currency did not exist and we used gold and silver as main forms of currency.

These are essentially the most basic forms of decentralized currencies, and they certainly worked well to serve their purpose - to store value, and to serve as a medium of exchange in transactions.

It's up to debate whether or not society would function better without a central bank, but all I know is that if I wanted to save my net worth in something, I would not put the majority of it in something which value is based on a central organization's trust, and they essentially can inflate the supply of as much as they want to.

Yes , still we need the central bank. As we stepped forward to modernisation that every country produce their own local monetary identity which helps to organise  and monitor their national economy.

[arifteguhr]

If the central bank will work on artificial intelligence, then we need this bank Because now central banks enrich the people which lead it

one time the central bank will also cooperate with the cryptocurrency working system, maybe the central bank can supervise and monitor its cooperation not to burden its investors

[FedorIzmailov]

in no case can you cooperate with central banks. what is the meaning of all this? there will be exactly such hedgehogs the electronic money that we have now? It is necessary to do everything possible to prevent this from happening

[Kaznachej123]

Well, central banks and fiat currencies are only a pretty new concept to humankind. The economy, as well as the currency, can definitely function without a central bank, as demonstrated by the days where paper currency did not exist and we used gold and silver as main forms of currency.

These are essentially the most basic forms of decentralized currencies, and they certainly worked well to serve their purpose - to store value, and to serve as a medium of exchange in transactions.

It's up to debate whether or not society would function better without a central bank, but all I know is that if I wanted to save my net worth in something, I would not put the majority of it in something which value is based on a central organization's trust, and they essentially can inflate the supply of as much as they want to.

Yes , still we need the central bank. As we stepped forward to modernisation that every country produce their own local monetary identity which helps to organise  and monitor their national economy.

      Join the Cryptocurrency world, there is no central banking, no middlemen. You are your own bank. Protest doesn't ever do anything, if you want a better system you have to get educated and help build it...

[fianaindriati]

If the central bank will work on artificial intelligence, then we need this bank Because now central banks enrich the people which lead it

one time the central bank will also cooperate with the cryptocurrency working system, maybe the central bank can supervise and monitor its cooperation not to burden its investors

cooperating with the central bank about crypto is indeed difficult, because sometimes the banks are neutral assuming that crypto is a competitor for the progress of the central bank. even though that is not true, only the news is not true. so with the news circulating like that, until now the bank sentrai has not been willing to cooperate.

[oriontab]

Unfortunately, the so called "experts" that cause majority of the financial dooms will never agree with this view because they are the profiteers of the current  debt-based econmony, powered by the fractional reserve banking system. Having a  central bank is something foreign to the evolution of money historically

[mhellaparcon]

At this time we still need central banks, we need banks to liquify and encash our cryptocurrencies. When time comes that we can almost used the cryptocurrencies for all types of transactions and trading, then we can day now that we don't need banks anymore.

[CoinsGazer]

The 2008 global financial crisis, the Greek debt crisis, and the growing financial needs of a growing number of national economies have raised questions about the central bank that monopolizes the issuance of currency. Perhaps considering these issues, the International Monetary Fund (IMF) recently published an article on cryptocurrency, which unexpectedly called cryptocurrency or would become a "future currency."
So, is it possible for cryptocurrencies to eventually replace fiat money and the central bank. But teare are also some questions about this issue, including:
1. Will this shift reduce the market demand for central bank currency?
2. Will this change affect the ability of the central bank to control monetary policy and interbank lending rates?
3. Will this change allow the central bank to start designing interest rates for encrypted assets as well?

I think the central bank will not be replaced in the early years before these issues are confirmed.

[rafi035]

Humanity go in the chaos if we dont have central control unit.
Dont believe to the freedom by some young crypto enthusiast

someday the bank will cooperate with cryptocurrencies because it requires supervision of the regulation of a system that will develop very rapidly, of course it will be good and more developed

[efxtrader]

Bitcoin and others cryptocurrency is decentralized system and i think it dont need central banks to control bitcoin or others cryptocurrency. Bitcoin created because the system on central banks is not right and always creating economic crisis, so i am believe crypto community should not need central banks

[jobukegoya]

I do not see the essence of central banks in the bitcoin and blockchain technology. Bitcoin is decentralised and that is a good part of it. Getting a central bank for bitcoin means bitcoin owners will no longer remain anonymous.

Bitcoin does not require a central bank, because this applies to the whole world, as well as peer to peer, where transactions are made online between one wallet owner and another wallet owner and all are anonymous, so that the role of the bank is eliminated. All transactions occur because of price agreements on the bitcoin market, which refers to supply and demand.

[drmilind2004]

Community Banks flourish in Germany because of the positive cultural traits of the German people like honesty, fair mindedness, obedience of rules and regulations, and incorruptubility.

I know of several third world countries where such type of "community banks" exist under the moniker "co-operative banking institution" or "co-operative credit society" or simply "micro payments banking". While a tiny few of them might be doing some good work; for the most, they are overrun by corrupt cliques, comprising politicians who literally buy the votes to be elected on their board, (that's democracy for you, developing country styled), and the bank officials.

In a short while, these "banks" issue dicey loans to their favoured ones, and the bad debts, Non-Performing Assets (NPA) begin to pile up.  Only then do people realise the virtues of a Central Bank, which steps in, bails out the culprits thanks to an infusion of public capital, and all's well that ends well.

See the indispensibility of a Central Bank even when the banking system is decentralised; all because of lack of scruples and honesty in the general culture of that country! It's like an emergency backup and a safety valve combined. Many of these delinquent cultures have been crooked in this way since time immemorial, so even 're-education' and 'moral studies' won't improve the cultural deficit situation even an iota.

 

[Rory Kylo]

In my opinion, we still need the central bank because the banknotes will still exist, they can not be completely replaced by bitcoin for many reasons.

[guybrushthreepwood]

I don't think we need central banks, but banking institutions will always be needed to issue things like mortgages and loans. In an ideal world nobody would need a loan for anything and I hope I never have to take out one or a mortgage, but we don't live in an ideal world and I absolutely despise how much power the banks have and how much profit they make by over-charging for things. They also get away with things like money laundering and crashing the economy due to their fraudulent practices and the bankers somehow escape jail time, but if an ordinary citizen like you or I commits the same offense we can't buy our way out of jail.

In my opinion, we still need the central bank because the banknotes will still exist, they can not be completely replaced by bitcoin for many reasons.

Please don't provide any of these reasons for this will you. There's no reason at all why bitcoin -- or indeed something like it -- can't replace fiat currency issued by central banks and we certainly doesn't need paper money which is already outdated. I don't think bitcoin would be perfect as a currency right now but bitcoin allows and also shows you that banks aren't absolutely necessary to issue the currency. In fact, I think it's only a matter of time before one nation abandons it's government issued fiat for a crypto of some sort.

[Sobocirevo]

I do not see the essence of central banks in the bitcoin and blockchain technology. Bitcoin is decentralised and that is a good part of it. Getting a central bank for bitcoin means bitcoin owners will no longer remain anonymous.

The application of bitcoin in a country must have rules from the central bank, because the central bank is a rule maker in each country. Even though eventually Bitcoin is no longer anonymous. But for the long term, of course there will be binding agreements in each country, about digital currencies. Without rules, bitcoin will not be accepted in all countries. Only in certain countries, bitcoin can be accepted.

[bitfocus]

I ma not any economist, but I think, we don't need any bank, nor central bank if we start using crypto at a massive scale.

[nuraziaaziz]

Sometimes I think that it is good to have central banks involved because if there is anything crisis happened, we could check with them for assistance however if having decentralized system, if anything happened to us, we will lost a lot of money unless we really focus on it and check through.

[Udrujec]

I think that some kind of regulatory body is still needed. In addition, there are many unique banking transactions which bitcoin cannot change. Therefore, I see the ideal - the adoption of bitcoin by banks and their joint successful work.

[nahotachikwem]

I would rather say no because it is fiat money which is controlled by a Central Bank But cryptocurrency is decentralized.

[Glutius]

Perhaps we will need banks even despite the full adoption of cryptocurrencies. This system is still quite convenient. Most likely, when bitcoin is accepted as a currency on a global scale, Central banks will simply change.