Do we Need Central Banks?

[Snaic]

Do we need central banks? It’s not up to us to decide, but the government of each state. We can not influence the solution of this issue. From the point of view of the state, central banks are very necessary, since they perform a lot of useful functions, including maintaining the national money rate, ensuring a uniform financial and credit policy of the banking system, ensuring the implementation of the country's budget and solving many other issues. Therefore, central banks will exist regardless of our desires.

[VB1001]

There is the possibility that the economy collapses as we know it, they can not return the world debt.

Andreas Antonopoulos, Escaping the Global Banking Cartel

https://www.youtube.com/watch?v=LgI0liAee4s

[ynatopak14]

We still need the Central bank or banks.
cryptocurrency still depending on the internet connection to be used.
We people in crypto, still have our token exchange to FIAT.
we still dont have the merchants all over the world and we still need them FOR NOW!

[suman mark]

 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.

[Bitfling]

I think central banks needed in current economic system. Central banks needed to boost economic growth. Interest rate and moneter policy is central banks authorities and i am still believe central banks still needed in our economic system

[Inosend]

Central Bank is only here because bitcoin is yet to reveal it real worth and other crypto currency suffers it too, once bitcoin recover it worth you will see the difference

[millionaireshs]

Shifting from Central Planning to a Decentralised Economy: Do we Need Central Banks?
by Professor Richard A. Werner, D.Phil. (Oxon)

I. The Central Bank Narrative

For more than the past four decades, public policy discourse, especially when touching on macroeconomic and monetary policy, has been dominated by the views held and actively sponsored by the central banks, particularly in Europe and North-America, as well as Japan.

Their policy narrative has been consistent over time and virtually identical between central banks, which is why I shall refer to it collectively as the ‘central bank narrative’. It has been mirrored in the type of economics that central bankers have supported and that has indeed subsequently become dominant in academia and among the economists selected as the experts of choice in the major newspapers and television channels: the theoreticians advancing neo-classical economics.

This central bank narrative (and hence also the dominant neo-classical economics, also known as ‘mainstream economics’) has at least five major pillars, which I shall list briefly:


The truth of the matter is: We don’t need central banks. Since 97% of the money supply is created by banks, the importance of central banks is far smaller than generally envisaged. Moreover, the kind of money that commercial banks create is not privileged at law. Legally, our money supply is simply private company credit, which can be created by any company, with or without banking license.

Eurozone countries, having given up the right to their own currencies, can still create money and reflate the economy: the government, for instance in Spain, simply needs to stop the issuance of government bonds, and fund the entire public sector borrowing requirement from the domestic banks that create it out of nothing – and can do so at more competitive rates as the bond markets: this policy of Enhanced Debt Management (Werner, 2014b) not only would make it obvious that Spain does not need the ECB, but it would also put the national debt profiteers – the bond underwriting firms such as Goldman Sachs and Morgan Stanley – out of business.

This reality of private money creation also means that we can, without legal obstacles, create a decentralized system of local currencies, without central bank involvement.

The key principle of such decentralization is local autonomy, self-determination, self-responsibility and self-administration. These are in fact the fundamental principles of the co-operative movement, as championed by Hermann Schultze-Delitzsch and Wilhelm Raiffeisen over 150 years ago. This co-operative movement early on realized that a crucial role for co-operatives is in the creation of co-operative banks controlled by the local communities. Sadly, in the UK credit unions are not banks, since they are not allowed to lend to firms in meaningful amounts, and don’t have a banking license. Thus we need to create true community banks.

Lord Action pointed out:

 

“It is easier to find people fit to govern themselves than people fit to govern others”.

 

“Towns were the nursery of freedom.”

 

The German banking system is dominated by 1,500 community banks, which are also the majority of banks in the entire EU. This means that 80% of German banks are not-for-profit, which has strengthened the German economy for the past 200 years. A banking system consisting of many small banks is also far less prone to boom-bust cycles and it creates more jobs per given amount of loan than large banks. Thus community banks also result in a more equal income and wealth distribution.

Local banking is highly popular in Germany, because SMEs get access to finance that would not be serviced by large banks. The community banks provide their services at competitive rates and support their customers also during recessions. With community banks, the wider community gets a bank whose goals are aligned with theirs, banks that pay taxes, banks that support local growth and jobs. At the same time community banks offer customers a place to put their money where it can benefit the local community, not far-flung projects or speculators.

Can we tackle this challenge?

Until the 1970s, there has been much optimism in economics and there have been high expectations that many of the problems of mankind would soon be solved.

Was this a reasonable expectation?

While it has not come true, it was a reasonable expectation. This is because

 

“Our problems are man-made, therefore they may be solved by man. And man can be as big as he wants. No problem of human destiny is beyond human beings”

John F. Kennedy

Central bank is actually important because this is the agency who regulate and handled the legit type of fiat money and provide a good service to all people in returns with the good benefits in general. so while there is no clear about feature regarding the proper beneficiary to all people specially in the low class quality of living  we are still support of central bank.

[RadjorBlade]

Do we need central banks? It’s not up to us to decide, but the government of each state. We can not influence the solution of this issue. From the point of view of the state, central banks are very necessary, since they perform a lot of useful functions, including maintaining the national money rate, ensuring a uniform financial and credit policy of the banking system, ensuring the implementation of the country's budget and solving many other issues. Therefore, central banks will exist regardless of our desires.

The Central Bank must be needed in every country, to make financial regulations that will become the basis for banks and financial institutions to carry out their activities. For cryptocurrency, I think the central bank is quite limiting, so that its use does not violate the country's law and does not harm the cryptocurrency owner of his country.

[Abal Abal]

if we see in our life activities, we are very rarely doing interactions and transactions with the central bank. in other words, actually we don't need a central bank, especially since the advent of bitcoin and blockchain.

[Raidal]

I live in a developing country on the Asian continent which still prohibits crypto currency transactions. So I consider myself still in need of a central bank. My country that prohibits crypto currency makes my access to crypto currencies very limited so I must still need the central bank to support my transactions every day. As a business that uses central banks and crypto currencies, I am still very dependent on this central bank. My partners in foreign countries also still have some who don't believe in crypto currencies so they choose to make fiat currency transactions. Of course this makes me even more in need of a central bank because the central bank is in control of the circulation of fiat currencies throughout the world. Yeah, I can only hope that the crypto currency will get recognition internationally so that I can do all my business transactions with crypto currencies. I feel that crypto currency is easier because I am not hindered by the policy authority of a country.

[fosco333]

If we are dealing with cryptocurrency which is decentralized, why we need the centralized bank ?
Centralized banks are used in fiat currency because fiat is not decentralized.
I believe cryptocurrency can running without central bank. Unless there are some advantages for crypto when using central bank, i guess it won't be necessary to using central bank.

[jatin729]

When things come on central bank than there is whole financial system of the country comes and how it is to be managed.
Central Bank is must in the centralised system. As we know Central bank has to set some norms, rules for banking sector in the country.
In decentralised system we don't need central bank because everything goes P2P and no third party is actually interfere in between.

[Abiky]

There are advantages and disadvantages if we have central banks in cryptocurrency world.
But i guess cryptocurrency main characteristic is decentralized, so central banks is not needed.
Maybe we can have decentralized banks of crypto in the future if cryptocurrency keep developing.

Exactly. Cryptocurrencies are all its needed to live a life free from central banks. After all, they were introduced to circumvent the middleman. The very reason we are still depending on central banks it's because they provide custody of our Fiat money which is backed by the government. Since crypto hasn't reached a point where it could replace fiat, central banks are still needed.

Even within a few years from now, central banks might continue to exist if they adopt the Blockchain for their own benefit. Of course, it has been known that centralized institutions are subject to corruption and fraud. But, if governments worldwide continue to give power to Banks, then they'll continue to exist no matter what.

Nonetheless, time will tell us what will happen with central banks as their existence become threatened by Blockchain technology. Just my opinion

[Boys27]

We do not need a central bank, but we also cannot eliminate the existence of a central bank because the government is a state that needs a central bank whose function is to circulate money and regulate a country's economic policies.

[Periodik]

I don't know if I agree or not. Central banks are the agencies assigned in manufacturing money. Of course it is based on existing monetary laws and other policies. As regards fiat system, it is necessary. Whether we need the fiat system or not is a different issue.

If we compare that to cryptocurrencies, the developers and the team are like the central banks insofar as the creation of coins, the economy behind it, the distribution, the products, the partnerships entered into, and so on are concerned. They are the ones who are assigned in designing the overall system and direction of the coin. 

[denzkilim]

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.

I think central banks are still needed for the paper money that we usually use on a daily basis to be able to maintain their value and not become volatile as a Crypto Currency. Bitcoin and other Crypto Currencies also need this paper money because of their stable price and Bitcoin is paired with it and there is no way Bitcoin will be used by traders if there is no stable currency pairing with it.
Having both a centralized currency and a decentralized currency is great for this kind of industry it is because of both this type of natures are cooperating to each other in a way that most people don't see.

[Rashid555]

I think we do't need any central banks for the crypto currency and for the market regulations is 50 50 because if controlled then may be the price is stable and some people will prefer this and central banks are important because people trust it more.

[unbotak]

I think we do't need any central banks for the crypto currency and for the market regulations is 50 50 because if controlled then may be the price is stable and some people will prefer this and central banks are important because people trust it more.

crypto is independent, so I don't think there is a need for a central bank. crypto has many features that allow it to be independent. even if crypto works with the bank and becomes more stable I feel the crypto characteristic disappears. because what I know, crypto is an investment that can be very profitable because of its unstable value.

[heyfiner99]

Shifting from Central Planning to a Decentralised Economy: Do we Need Central Banks?
by Professor Richard A. Werner, D.Phil. (Oxon)

I. The Central Bank Narrative

For more than the past four decades, public policy discourse, especially when touching on macroeconomic and monetary policy, has been dominated by the views held and actively sponsored by the central banks, particularly in Europe and North-America, as well as Japan.

Their policy narrative has been consistent over time and virtually identical between central banks, which is why I shall refer to it collectively as the ‘central bank narrative’. It has been mirrored in the type of economics that central bankers have supported and that has indeed subsequently become dominant in academia and among the economists selected as the experts of choice in the major newspapers and television channels: the theoreticians advancing neo-classical economics.

This central bank narrative (and hence also the dominant neo-classical economics, also known as ‘mainstream economics’) has at least five major pillars, which I shall list briefly:


The truth of the matter is: We don’t need central banks. Since 97% of the money supply is created by banks, the importance of central banks is far smaller than generally envisaged. Moreover, the kind of money that commercial banks create is not privileged at law. Legally, our money supply is simply private company credit, which can be created by any company, with or without banking license.

Eurozone countries, having given up the right to their own currencies, can still create money and reflate the economy: the government, for instance in Spain, simply needs to stop the issuance of government bonds, and fund the entire public sector borrowing requirement from the domestic banks that create it out of nothing – and can do so at more competitive rates as the bond markets: this policy of Enhanced Debt Management (Werner, 2014b) not only would make it obvious that Spain does not need the ECB, but it would also put the national debt profiteers – the bond underwriting firms such as Goldman Sachs and Morgan Stanley – out of business.

This reality of private money creation also means that we can, without legal obstacles, create a decentralized system of local currencies, without central bank involvement.

The key principle of such decentralization is local autonomy, self-determination, self-responsibility and self-administration. These are in fact the fundamental principles of the co-operative movement, as championed by Hermann Schultze-Delitzsch and Wilhelm Raiffeisen over 150 years ago. This co-operative movement early on realized that a crucial role for co-operatives is in the creation of co-operative banks controlled by the local communities. Sadly, in the UK credit unions are not banks, since they are not allowed to lend to firms in meaningful amounts, and don’t have a banking license. Thus we need to create true community banks.

Lord Action pointed out:

 

“It is easier to find people fit to govern themselves than people fit to govern others”.

 

“Towns were the nursery of freedom.”

 

The German banking system is dominated by 1,500 community banks, which are also the majority of banks in the entire EU. This means that 80% of German banks are not-for-profit, which has strengthened the German economy for the past 200 years. A banking system consisting of many small banks is also far less prone to boom-bust cycles and it creates more jobs per given amount of loan than large banks. Thus community banks also result in a more equal income and wealth distribution.

Local banking is highly popular in Germany, because SMEs get access to finance that would not be serviced by large banks. The community banks provide their services at competitive rates and support their customers also during recessions. With community banks, the wider community gets a bank whose goals are aligned with theirs, banks that pay taxes, banks that support local growth and jobs. At the same time community banks offer customers a place to put their money where it can benefit the local community, not far-flung projects or speculators.

Can we tackle this challenge?

Until the 1970s, there has been much optimism in economics and there have been high expectations that many of the problems of mankind would soon be solved.

Was this a reasonable expectation?

While it has not come true, it was a reasonable expectation. This is because

 

“Our problems are man-made, therefore they may be solved by man. And man can be as big as he wants. No problem of human destiny is beyond human beings”

John F. Kennedy

Central banks needed to control economical currency like usd,euro..crypto can watch their own.Because there are no politics on crypto

[Msworld83]

The biggest fraud we have in this life is government who control everything in their favour and I bet you they only does or take action when they are not OK in that role but if it favour them then they have nothing to worry about and you and I can't say no , why should we be following everything they want or say, having control over everything is just a biggest fraud and central bank are the chief thief printing money when needed and causing inflation but our own central banks are the miners who print for us as a result of hard work we sent them and with a certain reward not just anyhow which is govern by consensus and not a round table of some official.