Topic: Bank Issued Fiat Backed Cryptocurrency (Read 479 times)
I'm my own bank
They will soon understand they cannot do this and need the bitcoin blockchain simply because of the security that the hashpower provides.
Boo to banks !! We don't want banks !!
The blockchain they are talking about lauching will be centralized one however they may decentralized or distribute their ledger at multiple places and use same technology like bitcoin to store those transaction in ledger. They are only seeking for stable and secure network or system for their transaction.
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No profit in buying it. Only risk in using it. No users for that. Maybe useful for settlement between national banks but certainly not a usecase for normal people.
All,
There have been more and more discussions about banks exploring blockchain technology for various applications, one of which of course is money. For example there was a recent article on coin telegraph http://cointelegraph.com/news/amidst-spike-in-bitcoin-price-japans-largest-bank-tests-blockchain-based-coin which talks about a major Japanese bank issuing their own cryptocurrency backed by the yen. I was just wondering what peoples thoughts are on banks trying to get into this space and the potential advantages and dis-advantages of such a system.
I can see how it would be an advantage for the bank to use the blockchain in a psuedo-open way so that business and people could process payments without having to use a payment processor. Beyond this I only see disadvantages. First, using the coin implies you are taking counter-party risk with the bank. Second, you are tying the value of the cryptocurrency to fiat, which is taking counter-party risk against the currency.
Would anyone here choose to use a such a system? Thoughts?
There have been more and more discussions about banks exploring blockchain technology for various applications, one of which of course is money. For example there was a recent article on coin telegraph http://cointelegraph.com/news/amidst-spike-in-bitcoin-price-japans-largest-bank-tests-blockchain-based-coin which talks about a major Japanese bank issuing their own cryptocurrency backed by the yen. I was just wondering what peoples thoughts are on banks trying to get into this space and the potential advantages and dis-advantages of such a system.
I can see how it would be an advantage for the bank to use the blockchain in a psuedo-open way so that business and people could process payments without having to use a payment processor. Beyond this I only see disadvantages. First, using the coin implies you are taking counter-party risk with the bank. Second, you are tying the value of the cryptocurrency to fiat, which is taking counter-party risk against the currency.
Would anyone here choose to use a such a system? Thoughts?
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