Do we Need Central Banks?

[sufiasyl]

Central Banks are generally for fiat currency. There're people who condiser as technical handicap. They can hardly use the crypto currency. So, for them specially, central bank is very essential.

[Mihail.B]

If we understand what banks are and why they are needed, we will come to the conclusion that banks control our money, and by and large we do not need them if everyone could be responsible for their money, we need to move away from this system and raise the financial literacy of the population.

[Jaslinbor28]

Of course we need central banks based on central bank the economy are moving also they set many things based on this they also protect us from bank theft and many regulations so central bank is important if we think about coins the Norway central bank is also thinking about coins.

[Nilda]

Of course! Central banks are a must in any country. Who would regulate banks, print paper money and other stuff essential to a functioning government. Central banks are not created to oppress citizens. Only people with criminal intents are afraid of regulations.

[naughty1]

It would be a mistake to say that we all do not need the central bank. In fact, the central bank plays a vital role in our lives and in every country. Bitcoin or any other currency will not be valid unless there is a standard currency - USD. It is the only way to determine the value of digital currency.

[TrumpD]

In today's money systems, central banks are absolutely necessary. They are essential to every  country's banking operations. Regular banks wouldn't be able to  transact among themselves without problems, because without a regulator, (central authority), trust is needed between the different banks, and that can be abused easily.

[cryptolet]

It is very much importance that a country have a central bank because it helps to regulates banks, print fiat money and a country without rules, limits, regulations in terms of money will be a loosed country or state.

[kotulo]

Of course we need central banks, you know the countries need that

[tikanima]

In my view, we need that, the central bank monitors all financial markets and they also issue notes. They are also in control of all commercial banks.

[percent]

Banks are over, the paradigm is moribund. In the coming years we'll see UBIs brought in. Energy & production will be free. Currency itself will be devalued.

[Persiville]

In today's money systems, central banks are absolutely necessary. They are essential to every  country's banking operations. Regular banks wouldn't be able to  transact among themselves without problems, because without a regulator, (central authority), trust is needed between the different banks, and that can be abused easily.

Yes. Personally i agree with you as of the situation right now, but when we say crypto, as much as possible it doesn't really need banks, because of what we commonly have as decentralization, but still it doesn't mean we would surely eliminate each one or the other.

[audaciousbeing]

Irrespective of the argument against the continued existence of the Central Banks, I still feel strongly that there is need for the Central Bank to continue to exist or else the turmoil that will bring will be too much to bear and the importance in the economy cannot be understated to the common man when its comes to the price of goods and services. Sometimes ago, I read about a country that had some currency crisis for a country that is import dependent the country's currency was devalued and it was serious issue affecting the poor more than the rich because the rich could afford the landing price and the same time could afford the foreign currency which they had kept in their domiciliary bank accounts during the time of stability.

Then came the savior of the day in person of the central bank who came with policies and ensure that the devaluation was minimal and was kept at par for a long period of time. The Central Bank is there to ensure balance which would have been worse off if left in the hands of capitalists that would only look after their own interest.

[ETHtotheMOON1]

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

we would need central banks in case we felt that we can't deal with our problems on our own. I believe that time has already passed long ago. We're ready for decentralization.

[Krabat]

We do not need not only central banks. We do not need a banking system at all. We also do not need an army, do not need corrupt politicians, And businesses that kill nature are not needed.

[ronsalwey9874]

If there is no central bank it is obvious that problems will create in the monetary system. Things like inflation and balance is very much necessary. In that case, the rich will become richer & the poor will become poorer, because the rich can hold money as much as they want but the poor need daily expense so it becomes quite impossible for them.

[roxxy]

Most of the country have their own central bank based on this they impose rule to currency and they are the main policy maker of economy based on this in central bank is needed but in case on crypto its not because they cant control those coins in the market also this coin is doing business globally.         

[sitnibtc]

central banks are necessary for each state. for economic growth and regulation of the national money.

[burakdat]

Yes Central bank help the local exchanges to support them on the exchange of crypto to fiat and fiat to crypto. As we all know that it will invlove too many people around the world or in with that country so it will involve high money so in this problem central bank could lend and give license to those who passess the regulations on cryptocurrency.

[Babyfaceless]

mostly people need it if your a trader or you are using crypto currency im experiencing when im widraw a money in a bank it tooks 1hr before i widraw it in the bank the system of apps is too slow and we need to upgrade it our technology right now the price of bitcoin right now to small they need to deposit it in the bank and buy bitcoin a lot of people asking is the right time to buy bitcoin if i have a money i will buy bitcoin right now.

[Dukjila]

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

I have a question: why this post on the Bitcoin branch ?
The central bank does not need cryptocurrency, it is an extra detail in the mechanism, because it will not have any regulatory functions.