Germany’s central bank warned: digital currency may aggravate the financial crisis
Speaking in Frankfurt Wednesday, the German central bank governor Wiedemann warned of the risk of digital currency, says it is likely to exacerbate the crisis.
Wiedemann admitted in his speech, the central bank launched the official digital currency means to assure the public that their money is safe, but the crisis to the holders of money bank deposits into digital currency, may trigger a bank run:
The public has allowed to claim on the central bank’s (claim) current assets will make them safer, because the central bank may not repay. This feature is of great significance, especially in times of crisis when the holders of money into bank deposits will be extremely hope to achieve its official digital currency, will only need to press the keyboard. However, honey savers, Bank of arsenic, so that a bank run occurs more easily.
To create conditions for the bank deposit run at the same time, the lender is also facing a lack of liquidity, and difficult to loan situation.
Wiedemann concludes, “I personally think that the central bank should try to make more efficient than the existing payment system, and now faster but the immediate payment of the popular language. This will make the most of the citizens of the digital currency and lose interest, I am very confident.”
Digital money from Russia?
Wall Street horizons mentioned, catch up with the bitcoin currency gains recently attracted etheric Russian President Putin’s interest.
According to the official website of the Moscow Kremlin news, Putin in the last week to participate in the St Petersburg International Economic Forum met with Ethernet founder VitalikButerin during the workshop.
Putin of Buterin and Russian companies deploying block chain technology in the local plan expressed great support. Putin believes that this virtual currency can help diversify the economy of russia.
Putin at the forum said: “the digital economy is not a single industry, its essence is the basis to create a new business model.”