Bank of Canada Advisors propose a currency system based on Bitcoin

nnnIn the wake of the story, Warren E. Weber, a Canadian bank research consultant, recently published a 37-year study to present a financial system that uses the currency as a standard currency to replace the legal currency. Weber examines the similarities between the gold standard and the bitcover standard in the report, and points out the two benefits that the bitmember standard can bring. But at the end of the report, Weber said that as the world’s central banks and governments may have a strong objection to the idea, the Bitcoin standard may not be a reality.n
nnTranslation: Clovern
nCanadian bank research adviser Warren E. Weber has proposed a financial system that uses the currency as currency as the standard currency to replace the legal currency.n
nHe published a 37-page research report in which he mentioned that the digital currency was “Bitcoin”.n
nReport pointsn
nIn the report, Weber studied the similarities between the gold standard and the bitcover standard.n
nOne of the most striking resemblances between gold and Bitcoin is the lack of regulation of central bank or monetary authorities and restrictions on supply.n
nAccording to the algorithm rules of Bitcoin, the number of tokens that can be excavated and circulated is only 21 million, and the amount of gold that can be found on Earth is also very limited.n
nThe report also pointed out that, like gold, Bitcoin standard will have three different trading medium.n
nIn accordance with the standard, Bitcoin will become the main currency, while the central banks of different countries will also issue credit currency, commercial banks can also issue banknotes or deposits and other credit currencies.n
nExpected earnings of standard currencyn
nWeber’s report also mentions the potential economic benefits of using the standard currency. One of the main benefits is that because of the “known, deterministic interest rate” when the encrypted currency is created, people will be able to more easily predict the price level of the digital currency.n
nAnother major benefit is that the investment resources currently allocated to hedge currency fluctuations will be released and thus more effectively utilized.n
nHowever, Weber believes that the standard currency may not be a reality, because the world’s central banks and governments are expected to make a strong objection to this.n
nn”If the bitcoin standard becomes a reality, the government and the central bank can not impose interest rates on the economy, and thus can not earn the money casting tax with their ability to ‘create money without cost.’n

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