Topic: What stops a Federal Reserve crypto scheme of their own? - page 2. (Read 3112 times)

Question is what's stopping them to print enough USD to buy them all, or constantly buying them so centralizing it and ruining it that way...

And like I was saying in another post up there imagine what kind of development could be put in to a coin like that. Imagine a team of 200 top tier programmers working full time on the software. It would be amazing. And since it would be open source the benefit to the community(for study and forking purposes) would be amazing.

Implied legitimacy, trust, less volatility, accountability, essentially all the things that Joe and Susie citizen are skeptical about with current crypto-currency models.  

Edit: and it might be the only way to revive the USD against the renminbi.

What would be the point of a centralised decentralised coin?

To answer the question What stops a Federal Reserve crypto scheme of their own the problem is that they would have to ensure a consistent rate of supply and back it up to their own currency.

In essence there can never be 21 million US dollars in circulation as the press could not and is not able to base it off a consistent supply basically it is incredibly difficult to print money in that system or do fractional reserve banking.

Nothing is to stop the Feds from making their own coin, but this would set precedence that crypto would be ok to use in all aspects. Except the nature of crypto, especially the semi-anonymity of it, would directly conflict with other government branch securities, so I don't see this happening.

If it were to happen, no one will support it anyways, seeing how they are to only serve the interest of the government.

Aren't we all.... subjects, in this neo-feudal capitalist caste system?

Why would they do that? They already have an electronic system in place. Are you suggesting they replace FedACH and FedGlobal with something else? It would have to be something that worked a hell of a lot better than Bitcoin. The Bitcoin network would be crushed by the massive amount of transactions that FedACH and FedGlobal process in a day. That's 60 million transactions a day with a total value of 2 trillion dollars.

They could create a coin to 'hedge their bets' so to speak with the dollar. The advantages that 'Fedcoin' would have is being backed by the government, meaning the core developers would be paid by the government, instead of what we have with the bitcoin foundation. They could have hundreds of paid developers constantly iterating a superior software product. With the type of programmers they could attract they could take every advantage of altcoins like faster confirms and cpu mining. As well as have decentralised exchanges with the free flow of fiat to fedcoin(I don't know exactly how they would do this, but obviously the government controls fiat, so if they wanted to open this up they could).

There's lots of options for them if they chose to do something like this. I think if they wanted to establish a coin with clear advantages over bitcoin, they could. They have the resources.

Of course for a lot of people it would all be meaningless since their primary motivation for using bitcoin is to detach themselves from government control, but the majority of people aren't necessarily interested in that.

I don't think the Fed or the government would actually do a project like this. But they probably should. Even just as a reference type of thing to help propel the technology forward.

This is why the Federal Reserve will never create a Fedcoin.  It would make the escape from fiat much easier.

It doesn't make any sense whatsoever for them to have a satoshi-style system. Being a centralized third-party issuer that controls access, they experience none of the inherent problems that a cryptocurrency was conceived to solve in the first place. A "Fedcoin" wouldn't be a cryptocurrency, it would be a database.

What features would this Fed coin have that would have people rushing to use it? If it is going to be centralized why even have a crypto coin?

If I were the Fed I would be working on creating cryptocurrency. It might mean dollars are used less but the average person would be much more open to using "Fedcoin" rather than bitcoin I would think. I don't think Joe Sixpack cares too much about decentralisation.

What has drawn a lot of people to cryptos is its decentralized nature. The Fed would just be in essence creating a digital USD. Don't think it would spark too much support.

Just imagine if the Federal Reserve started their own cryptocurrency, created a FedChain, blessed the banks to use it, ect. I can't imagine the limitations on it, but I am sure they would be bad. Probably would be a way for the feds to create their own coins in the protocol.

Soon there would online exchanges like Cryptsy.com that would allow you to quickly switch your FedCoins to BitCoins.
 I think ultimately, this would actually accelerate the fall of the dollar.

Indeed they can.

Wouldn't things like colored coins facilitate something like a federal reserve in bitcoin?

Or am I misunderstanding the application of colored coins in this case?

An entity could issue colored coins that are backed by debt, could they not?

Good. They can implement blacklists, and asset forfeiture, and demurrage, and identity tracking, and then people can stop suggesting that Bitcoin add those things because we can tell them to just use Fedcoin if that's what they want.

Are we suggesting that the fed is all ready behind a particular crypto currency or planning to take one over?

Excellent.  I for one hope they do it.