The central bank to explore the issue of digital currency in the chain may block
The world’s central bankers might be “wise”. They witness the bitcoin test from the digital currency gradually become a market value of nearly 100 billion dollar currency; therefore also began testing a digital currency, or waste of time, will be the technology boom behind.
Britain, Russia, Canada, Australia, Chinese etc. in the world a digital currency exploration frenzy. They want to try to issue digital currency in block chain. This year’s activities more active, although the study has just started, many puzzles waiting for answers. But more and more people believe that the digital currency in the global circulation.
The Bank of England (BankofEngland) block chain team are studying the impact of the central bank issued digital currency. Bank chief cashier VictoriaCleland said, “the fast development of technology. Many people think that the bank the disadvantages, but we have to think: “we can seize the opportunities for innovation?”
In order to assess the risks and opportunities of the block chain and digital currency, the central bank began to attract global central bank, commercial bank and the views of scholars. The central bank needs to know the effect of digital currency for economic and financial stability, the technology can withstand hacker attacks, to provide services for all 65 million British citizens. Cleland said, “we can’t put it on the shelf, you really want to be it overturned”.
The governor of the central bank began to seriously study the bitcoin technology.
Bitcoin breaks any central control mechanism, replaced by encryption technology. The operating system is block chain, each transaction is block by the computer all the blocks are connected into chains, the formation of eternal records, is also the block chain network, everyone can see. The circulation speed of digital money fast, high efficiency, low cost, can be tracked by the central bank’s attention. These advantages can reduce the risk for the implementation of monetary policy. The central bank hopes to launch a digital currency block chain; at the same time, commercial banks and financial institutions to simplify cross-border settlement with it, to reshape the outdated back-end infrastructure.
However, because the digital currency is not controlled by the central authorities, anonymous, decentralized peer-to-peer network; cause the central bank worried. So they need a different mode of digital currency.
The blockchain liberals are divided into two categories, controversial; a kind of support for open source, to the center of the network; another one is closed and controllable database support.
CoinCenter is committed to the non-profit research institutions to solve the problem of the encryption of monetary policy. JerryBrito executive director of the agency said, “you can point to point encryption currency in cash and assets, this is real progress”.
The Bank of England is about more positive measures. May even bypass some large banks, allow individuals to directly control the central bank accounts, commercial banks will be excluded from the system of the circulation of money. A person familiar with the process said that these large banks are quietly boycotting the mode.
But bankers are no longer worried about bitcoin will threaten the status of legal tender.
The International Monetary Fund (IMF, InternationalMonetaryFund) digital currency research team leader DongHe said, “we do not believe that private money will go beyond legal tender”.
“Although private currency and currency have contend, but in the end victory of legal tender”.
Another serious problem is the digital currency regulation. This problem is prominent gradually, the need for international cooperation. DongHe said that the regulatory approach must cooperate to explore the digital currency monetary institutions, after all this money in the global circulation. IMF should build a platform for the cooperation.
He said that currently do not know when you can achieve the number of official money. But the next 5 to 10 years there will be a change, it is only a matter of time. As long as the financial system of the large-scale use of block chain financial transactions, the central bank also naturally accepted.
Of course there have been currency digital storage and processing mode, but the blockchain technology can provide the operating system more efficient, intelligent currency.
The enterprise IOHK CharlesHoskinson encryption currency, the currency can be programmed to ordinary people, businesses and government benefits. “You can set the terms for the most advanced digital currency accounts, the provisions of the monetary use of people, time, place and amount. Digital books can achieve this”.
OmidyarNetwork is the founder of eBay PierreOmidyar established investment company co-founder TilmanEhrbeck said, digital currency will affect developing countries and regions.
Ehrbeck said, because the digital currency can be used in electronic equipment, low cost, convenient use, so the world billions cannot get good banking services group will benefit from. But the current research mainly concentrated in the financial sector.
Harvard professor KennethRogoff said, “the government will issue a digital currency, this is inevitable”. He believes that cash will not disappear, change always have their own role.
“In the end, the government will issue a digital currency, ordinary people can at very low cost access to digital currency service”.
But he warned that “it will be decades of government digital currency; first need to solve a lot of security and regulatory issues. Many central banks have been exploring this issue”.