Holland International Group, said the central bank should be embedded in future bitcoin protocol
A video from eZonomics report, report from the ING report recommended improved bitcoin protocol, in order to establish a similar government support similar central bank system to manage the digital currency.
He claimed that ING believes that because of the lack of supervision and its variability, bitcoin transactions only with three central principles in a traditional currency, he said: “the real money can adjust the money supply through the adjustment of interest rate, but bitcoin transactions because there is no central management mechanism, no adjustment.”
In the video, ING economist Teunis Brosens said that in order to make inference bitcoin like traditional currencies, play, need to develop a “money supply and demand matching algorithm.
Brosens further said that technology is very popular in the market, he said: “the development of such algorithms is a great contribution to the economy, will be awarded the Nobel prize in economics.”
Bitcoin is involved in the field
In the video, Brosens introduced the definition of basic technology of digital encryption currency and the traditional currency.
The video also further pointed out that price volatility is a major drawback of bitcoin transactions, video quoted price fluctuation curve of 5 and a half years of bitcoin.
Brosens summarizes this view, he said:
“Money is a medium of exchange, store of value and unit of account. Bitcoin further accepted can be achieved after the first function, but behind the two because of the price fluctuation is very difficult to achieve.”