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Central banks are jelous of stable coins getting traction, and it seems that they want to create competition, which is a good thing. The problem seems that even
by xiphias2 6y ago
Central banks are jelous of stable coins getting traction, and it seems that they want to create competition, which is a good thing. The problem seems that even they can't decide what they want and how they want to implement it.
Stable coins can be owned by any entity using a private key without KYC regulations (that don't fit the central banking system), but if KYC regulations are required (just like with opening a bank account), hundreds of millions of people (or even billions) are probably left behind again in the world.
- darkcha0s 6y agoI don't think they are 'jealous' of anything. The central banks have no incentive to create competition on money markets, their central issue is creating a stable currency that fluctuates little in value; creating another 'coin' would go against that cornerstone. I think you are trying to shoe horn in the idea of this being a crypto / blockchain backed thing, which (while it might be implemented on top of such) it is definitively not.
- xiphias2 6y agoThey are specifically mentioning stable coins as an inspiration/competition. When you have to say why your product is better than another, you are definitely taking it seriously. Of course cryptocurrencies are not short term risk for central banks, but they already have some advantages that grow long term.
- darkcha0s 6y agoYou didn't read the entire article, did you? They go on to say that they are specifically different than crypto, because they are backed by a central bank. That makes a world of a difference.