The central bank will miss the ten reasons for the renaissance of the encrypted currency

nnnRampage comments: from the Internet, solar, 3D printing to encrypted currency, each new technology trends, the central bank can not follow the right move. Although a small part of the central bank in the encrypted monetary trends in innovation, to maintain their own currency competitiveness. But most of the central bank or face decision-making, human resources, innovation, mentality, thinking, technical capacity and other difficulties, can not be developed in the new technology.n
nnTranslation: Annie_Xun
nEugene Etsebeth is a former central banker and is a technician at the South African Reserve Bank between 2013 and 2017, where he is head of the Working Group on Virtual Currency and Distributed Books.n
nEtsebeth in this article lists the reasons why the central bank can not adapt to the innovation of encrypted currency, saying that they can not compete with the technological changes in the field of technology.n
nThis is a familiar trend that has occurred in the field of communications (the Internet) and now takes place in the areas of energy (solar), manufacturing (3D printing) and finance (encrypted currency), where rights and controls are moving from the state to the individual.n
nThis has a great impact on the central bank, the current central bank to keep the state monopoly on currency issuance and sovereign bonds. Although communications and manufacturing are not the key, encrypted money and ICO become the central core of the central bank.n
nIn these systems, the central bank does not issue currency. But the miners and algorithms control the tokens issue, that is, money supply. Despite the bank’s approval to store, send and spend money, now wallet suppliers and exchanges support the same function.n
nThe Renaissance of money has come, and the central bank is studying encrypted money, although some central banks are more open than other banks.n
nSingapore has been studying, using distributed book technology for real-time cross-border settlement, the Bank of England (Bank of England) in the test Swiss currency. The central bank even wants to build its own central bank digital currency version (CBDC).n
nHowever, the central bank is still not ready to meet the encrypted money Renaissance equipment.n
nIn fact, most central banks will find the ten reasons that it can not be overcome. Of course, a small number of far-sighted (positive action) central banks will keep their currency competitive in the emerging encryption currency trend, in the ICO implementation to the center of the process.n
nBut most will still succumb to the following questions:n
n1. past human resourcesn
nThe central bank needs to attract and retain talent to respond to new openness and transparency needs, as well as digital transformation and an increasingly complex global environment.n
nSlow decision makingn
nThe central bank’s decision is like crossing a syrup, and countless hierarchical systems make decisions take months.n
nThe working group needs to prepare a long detailed document, so that the parties to browse and sign, and then submitted to some leaders or vice president.n
n3. There are too few technicians and innovatorsn
nScholars, economists and those who take care of the overall situation in the central bank. Scholars consider the concept of the problem, economists interpret the data, and policy makers and regulators to think about the reasons and impact of legal publicity.n
nHowever, technicians generally do not participate in monetary policy and economic decision-making discussions.n
nFear testn
nAlthough some central banks involved in the trial, but fear from the concept proved to enter the pilot phase.n
nThis is natural, because once the central bank made mistakes, may be the credibility of the crisis, the credibility of the central bank is the cornerstone. But also fear that the early credibility of the currency and related technicians will legitimize the use of technology.n
n5. Territorial and isolated thinkingn
nThe central bank resembles an enterprise group that has a number of different departments that require a variety of skills and output.n
nThese differences make it difficult to apply new technologies, and the economic masterpiece of encrypted money is difficult to apply because it does not apply to any enterprise group.n
nIn order to highlight the nature of the central bank’s group, its core sectors and skills are listed below:n
nn1) Banking supervision: mainly supervise supervisors who manage bank licenses and audits;n
n2) Monetary management: manufacturing and logistics partners;n
n3) Financial markets: front, middle and back-end currency and bond traders;n
n4) Domestic payments: the combination of technical resources to pay regulators and run RTGS systems;n
n5) Research: mainly economists, according to the report statistics, and enter the repo rate decision.n
n6. purchase combined developmentn
nMost central banks do not have solid software development capabilities. So any new projects need to buy technology, the central bankers rarely explain or use the Merkel tree (Merkle trees).n
n7. caught in the status quon
nA large number of central bankers are professional, so the desire and ability to change can not be inspired. Change is often seen as a threat, the threat is caused by the status quo closely attached.n
n8. has a network of relationshipsn
nBanks get the bank’s operating license, you can use customer deposits profit.n
nThe central bank to protect the bank depositors hard-won funds, try to serve more customers: that is, to maximize the Pratt u0026 Whitney Finance. So the task of the bank is subject to the central bank, and serve the national citizens.n
nThese relationships and license purchases are costly and can not be easily changed to add new members.n
n9. Intergovernmental coordinationn
nBecause the central bank departments are used to isolate, responsible for monetary affairs of the intergovernmental sector as well.n
nThey cover the financial (KYC), financial intelligence, financial services behavior bureau, central bank, tax, secret service units. Each department has a different statute bill that overlaps with encrypted currency and ICO.n
n10. International coordinationn
nFrom a global perspective, the state must obtain institutional guidance, such as G20 or G7, the International Monetary Fund (IMF), the Bank for International Settlements (BIS), the Financial Action Select Committee (FATF, Financial Action Task Force) and Interpol (INTERPOL). International coordination usually requires long-term diplomacy and coordination of the agenda.n

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