Topic: ECB President: There is clearly a demand out there that we have to respond to (Read 373 times)

There is nothing we can do? You are wrong. Do not be too defeatist in this situation. You are giving up even before it happens. Why too weak and pessimist?
 
If you resist they will have the military kick your butt? What are you, an independent nation or a group of rebels or a private army? You are only a single citizen. And you can actually do something.

Have you ever heard of civil disobedience? We will not use their crypto. We will use Bitcoin instead! That is good enough resistance especially if everyone does that.

Are you aware? Bitcoin cannot be identified by states. Because bitcoin is a value tool. It is also a bitcoin currency. There's a difference between them. People buy and hide gold. However, people are both hiding and paying with bitcoin. These are complicated issues.

U and I can be afraid Yes but what can you do??
Notting!! 

If I resist they have Military to kick your butt!

So whoever got power has power!
They might play Nice at first with their laws rules and regulations..... But later on I dont think its all will look so soft and Nice

I am afraid they have, not just the rights but also the privilege. Crypto is not owned by anyone. It is not registered as a trade mark of any company or business. In fact, the codes are open to the public. Everyone can copy it, change a little here and there, and they have their own version of cryptocurrency. That is also something the very powerful central banks can easily do.

Now this Central Banks Come to think they have rights to touch crypto?

Im quite sure that they themselfes holding crypto 4 sure

Both are the problem, in the past when a country was in debt they had to pay with gold or silver, this limited to some extent how much countries could get indebted as whatever was the size of their stash it was not infinite so economic crises were smaller, but now that governments can print all the fiat that they want they can remain in an indebted state for longer, but eventually that will end and when it does it is an incredibly traumatic experience for all of those that have to live through it.

Fiat and debt are partners in crime. Fiat and debt is a death duo to kill individual economies, corporations, and even a country's economy.

Fiat money is a medium of exchange that has no guarantee of gold or silver, its intrinsic value is propped up on a piece of paper that is affixed with nominal or imaginary numbers on it, determined by government law through the country's central bank. In the beginning, paper money was only a guarantor of ownership someone for gold, but now paper money is used as a legitimate medium of exchange without any guarantee of gold or silver, that the user of the banknote has a deposit of gold or silver. In addition to the intrinsic value which is much smaller than the nominal value, paper money is also very vulnerable to increase and decrease exchange rates in the market. This situation is actually very unhealthy and can be detrimental to the government.

The principle of debt is to double money in a certain amount of time with the interest system. The Central Bank creates banknotes or fiat and lends to commercial banks with interest. These banknotes will multiply quickly because they rely on Fractional Reserve Banking. Fractional Reserve Banking is a system that establishes banks to save a portion of money deposited by depositors and use the rest to provide loans to other bank customers.

Seriously if we could just have the bankers who just happen to create money out of thin air, our current system is not as bad as it looks, in anytime of the history usually the system is not the bad part, its the people who use it.

Right now, there are derivatives, leverages, margins, commodities sold plus than combined and sold again etc etc many many bad things. Plus banks have less money in their vaults, literally own less money than they have for savings accounts and loans combined, so if one day everyone withdrew their money there wouldn't be enough money in banks to pay them up, that is literally a ponzi scheme that became too big to fail since it would actually destroy many lives. This is not systems fault, this is the fault of greedy people who keep wanting more and more money.

Honestly even if the stablecoin projects in the cryptospace pushed government in the right direction of adopting better banking techniques in the US, I think we should all be happy. I mean yeah, it still comes with the same flaws as something like Venmo or CashApp which have massive privacy problems. But for the large majority of people in the Western World, Bitcoin really doesn't help them -- USD and better banking does.

In the US we have some of the most antiquated banking systems in the world. We don't have instant transfers -- as transfers as of right now take a few days -- or you pay for a wire and that costs money.

If that's something that we fix then great, I think we'd all be better off with a digital USD/EURO alongside the paper versions as well.

The Problem is not paper currency but the debt
They saing crypto is Solution but.... Thts not Solution

Government issued digital assets are a much worse version of the traditional banking system. I would assume citizens will be issued specific wallet addresses like how Stellar works, in which case the personal wealth of all citizens will become known once a transaction tied to an identity happens (e,g, you pay your utility bill and the clerk looks up the wallet address you paid from; your wealth has now been doxed). Gov are unlikely to have the capacity to develop a system leveraging confidential transactions.

No matter how urge you want the bitcoin to become adopted by a certain country, that is still impossible to happen because they still not know how can bitcoin help their economy grow when its price grows again. The idea of the bitcoin is to become a digital currency in transactions, but they're focusing on how they will convert it in fiat because they know fiat is more reliable and useful.

I was quite curious about these new claims, actually quite bewildered and not sure what they were doing. Many countries are very afraid of money laundering components and that is why they never want crypto to be formed in their country. because that will reduce the government's tax and the country will be underdeveloped due to the absence of state development works. Germans definitely cannot control the blockchain system of the coins here and they will face serious mistakes.

Sorry but it is not going to happen, while it is true that bitcoin was born from very strong ideological viewpoints that stage is over, the moment bitcoin was released to the public this became about pragmatism and since we cannot stop governments to release their own stable coins what we need to do is study our reaction to it, and fortunately we do not have to do anything, I know I will never use those coins and many of the forum members will do the same but as cryptocurrencies become more popular and their reason to exist becomes irrelevant to all of those new adopters we will begin to see an increase in the demand of those coins.

Not all demands require a supply, nobody really wants ECB to get involved with this, nobody really wants even the governments to get involved with this, we love the adoption but we hate it when they try to ruin it. Look at petro and Venezuela, they seriously considered doing something like that only because their money started to worth nothing like Zimbabwe and they didn't want that to happen, that was the only reason why they looked into stable coins. Look at Cyrus they had a crisis years ago and moved to bitcoin, what happened afterwards?

Did they suddenly became a bitcoin country? I wouldn't want these big groups to get into bitcoin, I don't care if market wants it too, market only cares about how much fiat they will make, I want more ideological approach to bitcoin.

Does it make sense to remove a stable coin? What does it mean for states to formally enter this business? A new economic order can be established. The new order may not make small investors like us laugh. Everybody wants to make money.

Technological developments present opportunities as well as challenges for the world economy, including the EU community. Therefore, the development of this technology must also be faced with readiness and preparation. Technology has radically changed human life. The digital economy has opened up new opportunities in the field of trade, as well as bridging the interests of producers, consumers, and markets without being limited by space and time. For this reason, an integrated policy is needed so that the development of the digital economy can be a stimulus for European economic growth.

Christine Lagarde fully understands that as a leader she must bring technology to the ECB so that the ECB continues to exist. Along with the 4.0 industrial revolution that spawned new entrepreneurs in the financial sector, Christine Lagarde understood that banking must be more efficient, fast, transparent, and customer-centric. "The boundary between competition and collaboration will be different from before, which we often hear today with the term co-opetition,"

Lagarde has just served as president of the ECB and in accordance with his commitment that will maintain the confidence of European citizens towards the euro which is considered a real symbol of European integration. In addition, Christine captured the momentum after the finance ministers of the European Union countries refused Libra's presence until a special formulation was needed to deal with challenges and risks that arose in the future, for example, for consumer protection, privacy, taxation, cybersecurity, and operational security, money laundering, funding terrorism, market integrity, governance, and legal certainty.

Stable coins are an answer to the demands of technological development and also as a tool to minimize potential risks in the future.

Is it even possible to eliminate the possibility of manipulation without decentralization? By that, I mean, above all, price manipulation, which is impossible to control because it is a free market. I just don't see how Bitcoin would fit into the European or any other monetary system, because in that case, the control of the money would be in the hands of ordinary people.

That is why so much talk about the possibilities of creating stablecoins, it is something that is completely centralized and controlled by the authorities. The best chance for Bitcoin is to be declared legal tender on the whole territory of the EU, as is the case in Germany.

This is a further testament to my conviction that with the continued demand for digital coins, government would find away to ensure that the make one available. The point is they know that when a generation is going in a direction, it becomes too difficult to stop so the best way for them to win is to create an alternative for them which they can control. While this in the long run would be a blow mostly to decentralised coin because it would continue to weaken the strength of these coins as we have more stable coins backed by the Treasury of each country and supported as such.

They are between a rock and a hard place. Stablecoins are threatening to steal euro liquidity in the coming years. Meanwhile, they can barely sustain economic growth as it is.

These really are unprecedented times, which is why I think people are too quick to dismiss the S-curve adoption prospects of Bitcoin. Everyone seems to think it's limited to slow logarithmic growth, setting their sights on $50K or $100K for BTC when it could be headed for the millions.

Been a while since we've seen Ms Lagarde speak up, but she's clearly pro technology, anti assets that we don't understand yet. Bitcoin is getting there, but it will be a while before it's truly understood (and in the eyes of regulators, truly proven). I mean you need only see the questions posed by journalists and economists to Bitcoin experts (Antonopoulos being really one of the few) to see that they really still don't get it yet. As long as they're not convinced Bitcoin can't be manipulated, they won't get it. And on the other hand, there are those will be truly anti Bitcoin if they finally understand how uncontrollable it is and how they're being threatened by it.

The response to demand may yet change.

I guess she is considering the possibility of ECB creating its own stablecoin in response to facebook coin or something.
I read through the article and found this most interesting:

Retail banks in the eurozone are already being hurt by the ECB's negative interest rate policy. If they can't make money from fees, they go bust.

Lagarde would do better in restoring interest rates back to positive than in tinkering with stablecoins.

They know there is a demand for it but when will they react to it is the real question. Stablecoins are not something I favor that much because I do not trust the companies behind it, there is one backed by circle company, there is a famous tether one, there is binance one, there is gemini one, there is even talks of a facebook one.

None of these gives me that trust a nation could give, if USA government one day came out and said they are doing a USDG which is usd government backed or whatever they name it I would totally use it, think about it you have a stablecoin fully backed by a whole nation, they could do billions upon billions of it and not have to deal with any problems. It would be even a nice way to raise money for them as well so there is incentives for them to do it too.

Lagarde has been consistent in her pronouncements in favor of cryptocurrency. She does not hype it but she really knows that crypto is the future of transparent and reasonable money. She does not promote it either. Her statements are treading on encouragement to try to get to know the technology more and explore its potentials.

That answer is indeed curious but I think it simply means Bitcoin is already allowed although not in explicit law. It has been used and there is no argument to it being the preference of many people. It could also mean that Bitcoin is not something that is under anybody's control and so whether it will be allowed legally or not, it will continue to be in use. 

They don't sound too concerned about Bitcoin. Their data probably confirms the theory that Bitcoin and similar crypto assets are being treated primarily as speculative investments, not stores of value.

All the stuff we're seeing surrounding Libra, Tether, China's proposed digital currency, this talk of a digital euro......it's all related. There is burgeoning demand for instant, stable peer-to-peer payments. Regulators won't be able to hide from it forever. Lagarde sounds like she's acknowledging that.

the issue isn't savings and loans. it's remittance:

stablecoins are increasingly being used for cross-border remittance and avoidance of capital controls:


using stablecoins to transfer funds across borders means there is no need for bank wires or third party remittance services. it cuts banks out of the process entirely. cash and blockchains; no banks.

in the future, if this stablecoin liquidity continues to grow and grow, they could also experience adoption as a medium of exchange because of their wide acceptance, rather than just a remittance vehicle.

that makes stablecoins doubly a threat for retail banks. visa and mastercard are not the only ones profiting from debit/credit card transactions. every time a consumer swipes their visa card, their bank is charging interchange fees to the merchant. this is extremely lucrative for banks.

It will bring a market sentiment to choose stablecoin (which is centralized). Actually if the ECB's call to use stablecoin that the basic system is from cryptocurrency will attract many people to enter the world of cryptocurrency. There will be a clear legality about cryptocurrency and people will choose the best coin.

Whether they (banks) like it or not, cryptocurrency is continuously supported by the masses. Its growth and adoption is growing day by day, and since now ECB finds it has a clear demand its right time for them to act also by seizing an opportunity. Cryptocurrency growth is unstoppable though quite slow but growing.

Are they though? I think it's more of Visa/Mastercard being cut out rather than banks, banks can easily integrate with stablecoins and act as custodians and provide the same options for loans and deposits as they do with fiat. And people who want to use stablecoins aren't known for deeply caring about privacy or control over their money, so I totally can see them using stablecoins with banks.

I think what she clearly means is that bitcoin as an anonymous and decentralized currency will still be used even if the government bans it. I mean how would you detect that someone in a particular country is using bitcoin or not, however this does not mean that she is in support of bitcoin. I guess she wants to remain neutral in the talks about adoption of bitcoin.

I'm not sure if it would make any impact on the market. She clearly stated that there has been settled a clear line of separation between what they're talking (although she seems to not understand that Bitcoin is singular, and not be used as collective term for cryptocurrencies), and that the ECB focuses on R&D in digital currency sector, not in cryptocurrencies. They would find out whether such need for digital payment exists.

Yes, because it is not created for certain government and it is not governed by anyone. Bitcoin should take all the credits without it no Blockchain, no Altcoin, no Shitcoins and Stablecoins. I think the government should ease their pressure about for it is the roots of this current innovation.

Yeah, just a small step in the direction ECB or a similar entity will make its own stablecoin. Because there's demand, because they cannot let FB profit from this demand, because banks "have to" remain put in their position: handle people's money, whether people like that or not.

facebook saw the writing on the wall, that stablecoins have great untapped value for cross-border remittance. they did their research; the demand for libra is there. the explosion in tether usage in hong kong, mainland china, and russia ties into this too.

it seems like this stablecoin demand is forcing the ECB to discuss a "digital euro" system. this could (as lagarde points out) reduce consumer costs, "cut out the middleman", achieve financial inclusivity at low cost, and so on. this would in turn allow a digital euro to compete with private stablecoins in the remittance market---and eventually in all markets, because stablecoins might become common as mediums of exchange.

i wonder how the retail banks feel about all this. they are the middlemen being cut out in this scenario.

Watch it ----> https://youtu.be/chHnk6lSc5A

In a new interview with the new European Central Bank President Christine Lagarde publicly speaking about the demand for stablecoins.



While answering a reporter's question, Mrs. Lagarde says the European Central Bank "only knows" one currency that is currently stable.
As for her talk about bitcoin, she said: Bitcoin is not necessary to ask for permission.
What do you think of these words? Especially with what is happening in amending the regulatory laws of German banks.