Topic: Central Bank Cryptocurrencies Are Pointless, Says Ex-Federal Reserve Chairman (Read 224 times)
November 15, 2019, 08:58:57 AM
The first aim of the cryptocurrency ecosystem is to achieve decentralization but the external threats by different governments weaken this purpose. I am not sure what the authorities think about the centralized digital coin of the country but it will not be good in the recent bear market. It is pointless to create their easy controllable digital ecosystem, wise people will only use these coins as a utility.
November 15, 2019, 08:51:13 AM
Obviously, there are pros and cons but if you prioritize it is better to leave paper currency which may be less convenient but more anonymous. Because we all understand what a state is and how they like to keep everything under control.
November 15, 2019, 02:46:23 AM
If cryptocurrency is still controlled by a central bank, in my opinion it cannot be called a decentralized coin. One decentralized coin is Bitcoin which is controlled by any authority including the central bank and I agree that in cryptocurrency, the central bank is pointless
Of course, that would be their initial reaction to cryptocurrencies. Us as well are having the same impression on how they perform, but regarding our feelings and opinion to their system, our's is much more reliable since we do really have our advantages to their system. Theirs's, on the other hand, is full of speculation and fear that cryptocurrencies might replace their duty to provide the people with decent and efficient financial service. November 15, 2019, 01:54:42 AM
If cryptocurrency is still controlled by a central bank, in my opinion it cannot be called a decentralized coin. One decentralized coin is Bitcoin which is controlled by any authority including the central bank and I agree that in cryptocurrency, the central bank is pointless
November 15, 2019, 01:12:15 AM
In cryptocurrency, especially bitcoin, cryptocurrency central bank is not needed and indeed it should not exist because bitcoin is a peer to peer tool. The purpose of creating bitcoin is the absence of a third party (central bank) in every transaction we make and this allows for anonymous transactions
November 15, 2019, 12:02:10 AM
This move by China will probably follow through by other countries. I dont know what US will do while China is keep disrupting thr blockchain industry with their support all out. Ive known China will make a move like this, since they dont want to be left behind. You know how wise are they to think of an idea where they can monetize and dominates the economic.
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November 14, 2019, 11:43:41 PM
Although as a cryptocurrency enthusiast advocating for decentralization is something we're always in support of because wee have tested this decentralization and seen the benefits associated with it but on a large scale, the involvement of government bodies in the industry through centralized cryptocurrency isn't that bad. Currently we already have centralized non government backed cryptocurrency and they're performing just fine but with the government involvement, it'll be taking the industry to a whole new level also strengthening the trust of the average citizen in cryptocurrency which will also be beneficial to bitcoin.
I have said, government operating their centralized cryptocurrency will open the general public eyes to the awesome of bitcoin as a decentralized cryptocurrency since when to access your funds can't be restricted and each individual will have total control over their funds on like the gov centralized coins. Blockchain provides transpirancy, trustworthiness etc having the gov adoption those feature will be a plus to the society.
I have said, government operating their centralized cryptocurrency will open the general public eyes to the awesome of bitcoin as a decentralized cryptocurrency since when to access your funds can't be restricted and each individual will have total control over their funds on like the gov centralized coins. Blockchain provides transpirancy, trustworthiness etc having the gov adoption those feature will be a plus to the society.
November 14, 2019, 10:11:51 PM
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.
November 14, 2019, 10:06:14 PM
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.
November 14, 2019, 09:42:38 PM
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.
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.
November 14, 2019, 05:40:45 PM
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 
. November 14, 2019, 02:16:46 PM
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!
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!
November 14, 2019, 01:11:57 PM
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.
November 14, 2019, 01:04:40 PM
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.
November 14, 2019, 11:42:39 AM
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.
November 14, 2019, 11:03:39 AM
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!
November 14, 2019, 10:26:00 AM
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.
November 14, 2019, 10:19:55 AM
Quote
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.
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!
November 14, 2019, 09:56:16 AM
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.
November 14, 2019, 08:37:49 AM
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.
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