Topic: if central bank release cryptocurrency, any effect on current market? - page 3. (Read 401 times)

Such coin will surely target a specific group of investors. People who are too afraid of going rogue and making independent decisions. People who need someone to stand behind them and pat them on the shoulder saying it's going to be fine. They want to profit from crypto investments but would prefer it to be just like any other centralized asset. Less volatile and protected by law. Unfortunately, you can't have the cake and eat it.

If people trust that, for sure it will affect the price as many people will sell their bitcoins and other cryptocurrencies for that currency. But I don't think people trust the banks that easy. Because they want to control the transactions and in this way there is no difference between that currency and fiat.

Banks are interested in the blockchain as a system, because it can reduce the cost of their current IT system. There are several procedures that can be automated with a blockchain based new system. Also, they already have a geologically decentralized system with the necessary infrastucture (in branches, ATMs they have PCs that can act as a node and there's no need for specialized equipment for a blockchain like model because if one node fails, the others also have the ledger, so the risk of the data loss is minimalized with blockchain systems.

First of all, banks operate using private ledgers. They will always claim that is due to the privacy of their customers, which has some validity. However, banks rely on issuing loans in order to gain profits and revenue, and they use their customers’ money pool to back those loans, which I believe to be the main reason they keep a private ledger vs. a blockchain public ledger.

If they were to create their own blockchain, I don’t believe it would be their sole method of conducting business. It would probably be used to be able to track customers’ funds, and provide transparency for those who opt in to have their balances available for display publicly at any given time. I don’t believe it will be successful for them to create their own digital currency, as they’ll have less access to create loans publicly using the pooled funds, as the blockchain wouldn’t allow them to use their customers’ funds without their initiation of transactions to back a loan.

Banks are all about profits, and most of them probably realize that there are no profits in crypto currency for their type of business model. Besides, if they did create their own crypto, there won’t be much of an effect on existing values of the major cryptos... it would be no different than a random ICO or shitcoin launch by a random Joe Blow developer.

I do not it will make any effect into cryptocurrency market. We already have XRP Ripple which is a centralised cryptocurrency. It is not issued by central banks however we may guess that the central bank release cryptocurrency will be similar to that. Bitcoin and all other cryptocurrencies are invented and used in purpose of making decentralised payments. Some of them even has privacy feature which is their most important speciality.
In the end, I think central bank release cryptocurrencies would have a really smaller effect on the current market.

if the bank launches nearly the same digital money and can work with the existing bitcoin and cryptocurrency it will probably make the market very crowded and I'm sure the volume of the coin will be rapidly high and yes it is like a good news.

central banks have already released a currency, that is called fiat. then they released a digital currency, which is their banking systems, cards,... making the same thing using cryptography and blockchain technology doesn't make any difference. it is the same thing using some different underlying technology.

so no it has no effect on bitcoin and any other altcoin that is not centralized.

A Crypto currency is just as good as the people supporting it.... and this is exactly what would happen with the private

Blockchain technologies. People will decide if they are going to support these "GovCoins" or if they want to support Public

Blockchain technologies. {Decentralized/transparent/immutable and not governed by a central authority} If these

governments ban other currencies, people will turn to Black markets and using these currencies on the Dark Web, where it is

virtually untraceable. {This means ZERO tax for these governments}  

It all depends on whether I will impose this coin on ordinary citizens. If it is compulsory, it may affect the market of crypto-currency, although it is not so important, if the central bank simply enters its coin and puts it on the stock exchange. In any case, this is aimed at ensuring that the state extends its powers to the crypto currency.

There seems a sign that central bank are currently interested in the blockchain. So what will be the effect on current cryptocurrency if central bank release their own coins? will it be a good news?