Central Bank Cryptocurrencies Are Pointless, Says Ex-Federal Reserve Chairman

[cheezcarls]

The perceived inevitability of central bank-issued digital currencies on a global scale has been a hot topic of discussion for a while now. With China reportedly going ever so close to releasing the world’s first nationalized digital currency, central banks in most major economies are under immense pressure to follow suit — or at least evaluate the feasibility of any such move.

However, if we’re to go by Alan Greenspan’s take on the issue, the underlying concept of national digital currencies is pretty redundant and serves no useful purpose.

Read here for the full news article

I have a question to all of you guys here. Do you agree with Alan Greenspan’s statements about central bank cryptocurrencies are being pointless?

For me, central bank cryptocurrencies does promote the industry that we’re in. However, “central” is the main concern where “Big Brother” is always watching unlike being decentralized.

Let me know about your opinion or thought about this one peeps! I know some of you might agree, others won’t, and others might be mixed reactions. Feel free to share it here guys! Thanks!

[cudora]

This will be a kind of Libra crypto currency. A virtual coin that is based on blockchain, but is still centralised and fully controlled. I do not see any purpose in such currencies, especially in XRP, Libra and coins that are under a total control.

[NeuroticFish]

Do you agree with Alan Greenspan’s statements about central bank cryptocurrencies are being pointless?

Let aside crypto promotion, which central banks don't want to do, central bank cryptocurrencies are not pointless.
They would offer an alternative - a more trusted one if implemented correctly - to all the known stable coins, existing (USDT, GUSD, ..)  or not (LIBRA).

[masterrex]

I think it's not pointless if the Central Banks are creating cryptocurrencies that base in Blockchain, Maybe it can be helpful to drive adoption since cryptocurrencies was promoted by the government itself. The innovation that started by cryptocurrencies will be published if every countries in the world will make there own Blockchain base cryptocurrency the governance is not an issue here maybe it was centralized or decentralized form.

[takngantuk]

I agree with his statement, crypto issued by the central bank can't be called crypto. people who want to use crypto are those who hate centralization. so if the central bank releases their coins, I'm sure it won't work because no one will use it.

[Red-Apple]

they are always against it at first and only as long as they are not doing it themselves. maybe they don't see the profit in it right now and want to see others go ahead and get burnt first before they themselves jump in. otherwise in the end after this experimental phase ended and a couple of bank shitcoins were created, everyone else jumps on board too and create their own centralized shitcoin.

[Ucy]

Central Bank of rain water or sunshine is pointless as well. I see no difference to be honest. Money is what we make it to be.
One of the main reasons governments will want to have rain water reserves probably would be:

- To have reserves against dry seasons
- To purify the rain water
 - To prevent criminals from drinking water
-  To prevent criminals from terrorizing people with water.
- To sell the water for profits
- To help distribute the water, etc


By the way, I thought we already have digital currencies managed by national central banks?

Hopefully, central banks of decentralized cryptocurrencies do not lead to the banning of the real thing.
That would be like trying to ban rain

[mu_enrico]

I have a question to all of you guys here. Do you agree with Alan Greenspan’s statements about central bank cryptocurrencies are being pointless?

Partially...

Central banks can use their own settlement system, just like current e-money balance or whatever. They don't need to complicate things because the existing system is already sufficient for them.

However, as @NeuroticFish said, central banks' coin might be useful for stable coins lovers out there. It offers more "protection" and legitimacy. But keep in mind that the number of crypto users is so minuscule, only a drop in the ocean.

[audaciousbeing]

I totally agree with Alan Greenspan that it would totally be futile although with my own reasons and this is something I have shared in earlier posts. Central Banks creating their own digital currency might do so without putting any limit to its availability, there is no decentralization to say this is how its going to be created which means at any point in time, they can just go and create. Again, the reason they are creating is not born out of their own intelligent way of thinking of resolving localised challenges rather they are a creation to be a competition which might really not be the need of the country. Aside for the cost saving that would be achieved from printing and reprinting with security, nothing will be different from the fiat we have all come to know.

[avikz]

I have a question to all of you guys here. Do you agree with Alan Greenspan’s statements about central bank cryptocurrencies are being pointless?

For me, central bank cryptocurrencies does promote the industry that we’re in. However, “central” is the main concern where “Big Brother” is always watching unlike being decentralized.

From the perspective of streamlined economy, Central Bank issues digital currencies are not entirely pointless! There are major benefits to it from the governance point of view. It saves huge amount of costs for the government because they won't have to physically print fiat currencies! Also the less number of cash is being used in the economy, the better the governance! It will help them to identify illegal transactions quickly and efficiently! So if you look from government's perspective, it's certainly beneficial!

But it's pointless from the perspective of a privacy oriented common man!

[blckhawk]

I quite agree on his statement. If central banks initiated their own cryptocurrencies, I don't see any difference to their current system of currency. They're both under the same, centralized idea and system of one institution. The only thing I see beneficial to this move is the removal of the need to physical paper money, but other vulnerabilities might appear such as digital attacks (phishing, etc.) and malware-infected devices that would be used to transact these digital currencies. Decentralized cryptocurrencies are still much sensible to use and implement.

[chaoscoinz]

The perceived inevitability of central bank-issued digital currencies on a global scale has been a hot topic of discussion for a while now. With China reportedly going ever so close to releasing the world’s first nationalized digital currency, central banks in most major economies are under immense pressure to follow suit — or at least evaluate the feasibility of any such move.

However, if we’re to go by Alan Greenspan’s take on the issue, the underlying concept of national digital currencies is pretty redundant and serves no useful purpose.

Read here for the full news article

I have a question to all of you guys here. Do you agree with Alan Greenspan’s statements about central bank cryptocurrencies are being pointless?

For me, central bank cryptocurrencies does promote the industry that we’re in. However, “central” is the main concern where “Big Brother” is always watching unlike being decentralized.

Let me know about your opinion or thought about this one peeps! I know some of you might agree, others won’t, and others might be mixed reactions. Feel free to share it here guys! Thanks!

I don't agree that a central back crypt-currency is pointless. I think the big finical institutions and governments will adopt the technology in order to update their old outdated systems. New and improved centralization with help of tech like Block-chain and consensus algorithms. I don't believe a little centralization to be a bad thing, it takes time for any parliament to upgrade with the latest innovations. It must work its gears and spin it's wheels to get the machine going, it's 2019 and Bitcoin and Block-chain technology is around 10 years old. We're just getting started with going through the regulatory phases, I think it's going to take some time until we reach the big milestones like mass adoption & compete regulatory guidance. Blockchain & Crypto may forego a series of changes before then, only time will tell though.

[hatshepsut93]

I expected to read some interesting insight about monetary policy, but instead I got literally a one-line comment from this ex-chairman. If that's all he had to say, I think he's missing the point here - centralized cryptocurrency is just another format of fiat money, so in addition to issuing cash, central banks could create digital crypto coins. This is more like central banks trying to compete with payment processors and taking back some control over fiat currency from them.

[target]

Central Bank Cryptocurrencies being centralize is what their point, its meant for them to see where the money/coins go. There is just no way for them to compete the decentralize BTC and this is the way for them to check all data coming and out from the centralized coin will be their solution. Blockchain technology can also be used against decentralization and governments will soon had their way to also fight back. Somebody someway will find a way to get around with it which we can follow as well.

[bigcash2011]

He is right as crypto and blockchain tech is all about decentralization, borderless and something that gives user the control without any authority controlling it, so when central banks or governments will launch any form of coin they will be fully controlled and tracked which goes against the basics of cryto and blockchain tech.

[GucciBoy]

The central banks are afraid of losing power. That's pure FACT, they are afraid of losing their control over all of us, and decentralized trading platforms like the Blocknet DEX, including many others scares them.

You can move incredible amounts of money anonymous with these DEX's in the future, with no one knowing. You can't audit these exchanges, force KYC, or anything else like it.

This is bullish news, once again!

[NavI_027]

He is right as crypto and blockchain tech is all about decentralization, borderless and something that gives user the control without any authority controlling it, so when central banks or governments will launch any form of coin they will be fully controlled and tracked which goes against the basics of cryto and blockchain tech.

Indeed. For me, their form is the only thing that changed (from paper→digital asset), nothing more nothing less. So if you will scrutinize the whole scenario, it remains as a money backed by the government. Thus, I don't have any interests to use thse. Anyway, I wonder why they're now doing this? Hmm, most probably they realized that crypto or bitcoin to be specific is definitely a pain in their ass and they can't do to anything to prohibit us using it that's why they're trying to make an imitation hahaha. Uh uh uh, almost but not quite .

[Aabcde]

I think it's the era. If they don't follow the era, they will be left behind and will no longer be able to rule.
But on the other hand, crypto is made to eliminate intervention from anywhere in the transaction. Therefore, I agree with the opinion that the crypto bank is nothing more than a centralized imitation.
They are afraid that the laypeople of crypto will be touched first by decentralization. Therefore they immediately made quick steps to anticipate that. But with the presence of this issue, ordinary people will certainly look for more about the history of crypto and surely there will be those who put their money in decentralization.

[ecnalubma]

I think its really not useless at all since moving funds using crypto is pretty cheap than moving funds in traditional way. I think its about time that central banks need to upgrade and adopt the tech. Cryptocurrencies are already feasible and I see no issues central banks issuing their own crypto, whether we like or not we will still rely on central banks in the next decade they won't disapper only evolve.

[BlacksmithCorporation]

If central banks can overcome technical difficulties, cryptocurrencies could allow faster and cheaper money transfers across borders. At the same time, it can improve access to legal bidding in countries where cash supply is running out. But the risk of digital currencies is huge. That is why most central banks have to be cautious.