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The part which interest me a lot is this: "Why might citizens hold virtual currencies rather than physical dollars, euros, or sterling? Because it may one day
by thisisit 9y ago
The part which interest me a lot is this:
"Why might citizens hold virtual currencies rather than physical dollars, euros, or sterling? Because it may one day be easier and safer than obtaining paper bills, especially in remote regions."
This could be read either ways. This could also mean expanding network to ensure people are able to transact online using dollars held in their accounts but not in physical form ie "virtual dollars".
Then there is the word - "virtual currency". Sure bitcoin exists online so it is "virtual" in nature. But the supply control is defined by cryptographic proof so it cannot be created, at least for now, in an unlimited supply.
This makes me wonder what is Christine Lagarde even talking about.
- taysic 9y agoShe explains that quote clearly here: "For instance, think of countries with weak institutions and unstable national currencies. Instead of adopting the currency of another country—such as the U.S. dollar—some of these economies might see a growing use of virtual currencies. Call it dollarization 2.0. ...citizens may one day prefer virtual currencies, since they potentially offer the same cost and convenience as cash—no settlement risks, no clearing delays, no central registration, no intermediary to check accounts and identities. If privately issued virtual currencies remain risky and unstable, citizens may even call on central banks to provide digital forms of legal tender."