5 ms·

Biden to order studies on regulating, issuing cryptocurrency

15 points by caaqil 5y ago

bitxbitxbitcoin 5y ago
Studies on issuing cryptocurrency… central bank digital currencies are really coming.
- jqpabc123 5y ago
  Yes, digital currency (not necessarily "cryptocurrency") is a no brainer --- as various studies have already shown, it will happen eventually. The doom and gloom prophecies are just misinformation. Most of the economy is already running on digital currency transactions --- they are called debit/credit cards and ACH/wire transfer. A CBDC (central bank digital currency) would just cut out the middle men like Visa and Mastercard. It's insane in the modern era that digital transactions often carry up to a 3 percent fee. Centralized accounting software is just not that expensive to run. Cryptocurrency is often even worse in this regard due to the time/effort/energy needed to process transactions. A CBDC would stifle the crypto market based on nothing but simple economics and functionality. "Proof of work" simply will not work as a basis for common widespread currency use.
fsociety999 5y ago
Everyone should be opposed to a central bank digital currency. If you think tracking and censorship is bad now with tech companies, wait until the Government can control your access to money and cut off access to the financial system for any or no reason. Not only that, but the surveillance capabilities will be better than even George Orwell could have envisioned. Imagine if your wallet is restricted so you can only spend money at certain locations on certain days or times. I am aware that technically the Federal Reserve is not part of the Government, but the reality is that they are ABOVE it which is even scarier. They are not accountable to the people via elections or any other means. I do not know how they intend to spin this as a positive for society, but I am sure they will come up with something. Perhaps they will say that it makes it more easier to track down terrorists and criminals, or that it is necessary because Bitcoin mining uses a lot of energy, or that it is necessary to control Russia, but make no mistake, this is and will be an attack on regular working class people.
- trinovantes 5y ago
  Just wait until we have money that expires
  - tigerlily 5y ago
    To be fair, that feature would help eliminate corruption.
- verdverm 5y ago
  A US CBDC would likely be a private / public partnerships. They know that a government monitored account would never pass. The Fed will issue the currency and the banks (possibly thin banks) will manage the accounts. Normal means for law enforcement to gain history will be put in place.
  - jqpabc123 5y ago
    In other words, it will work pretty much like it does now --- except transactions won't necessarily need to run through 3rd party gatekeepers (banks/Visa/Mastercard) and can be P2P instead --- straight from my digital wallet to yours. Those who argue against digital currency are too late --- most of the economy already runs on digital transactions.
    - verdverm 5y ago
      I would expect these to be permissioned systems, so it will still be going ng through 3rd parties. The govt is not going to have the population using non-custodial wallets. There will be no mining or staking.
      - jqpabc123 5y ago
        Look at the studies that have been done by the Federal Reserve. Their plans include digital wallets --- with credentials created and assigned by a bank partner but with the ability to be used P2P without any permission required --- just like cash. I assume this would involve a 2FA type security setup. A friend could transfer money to you using just your account ID to create and send you a transaction token. But to mug someone, you would need to not only take possession of their phone but also obtain their wallet authorization key. The mugger could then access only what is currently stored in the wallet.
ddaalluu2 5y ago
Cryptocurrency needs to be banned. It's a major factor in climate change
- jqpabc123 5y ago
  No need for a "ban". Just audit stable coins and expose any fraud that keeps them pegged without the backing they claim. This sort of fraud is illegal under current laws. No need for any new ones. Without fraud, the crypto market would wither and die.

15 points by caaqil 5y ago

bitxbitxbitcoin 5y ago

Studies on issuing cryptocurrency… central bank digital currencies are really coming.

jqpabc123 5y ago
Yes, digital currency (not necessarily "cryptocurrency") is a no brainer --- as various studies have already shown, it will happen eventually. The doom and gloom prophecies are just misinformation. Most of the economy is already running on digital currency transactions --- they are called debit/credit cards and ACH/wire transfer. A CBDC (central bank digital currency) would just cut out the middle men like Visa and Mastercard. It's insane in the modern era that digital transactions often carry up to a 3 percent fee. Centralized accounting software is just not that expensive to run. Cryptocurrency is often even worse in this regard due to the time/effort/energy needed to process transactions. A CBDC would stifle the crypto market based on nothing but simple economics and functionality. "Proof of work" simply will not work as a basis for common widespread currency use.

fsociety999 5y ago

Everyone should be opposed to a central bank digital currency. If you think tracking and censorship is bad now with tech companies, wait until the Government can control your access to money and cut off access to the financial system for any or no reason. Not only that, but the surveillance capabilities will be better than even George Orwell could have envisioned. Imagine if your wallet is restricted so you can only spend money at certain locations on certain days or times. I am aware that technically the Federal Reserve is not part of the Government, but the reality is that they are ABOVE it which is even scarier. They are not accountable to the people via elections or any other means. I do not know how they intend to spin this as a positive for society, but I am sure they will come up with something. Perhaps they will say that it makes it more easier to track down terrorists and criminals, or that it is necessary because Bitcoin mining uses a lot of energy, or that it is necessary to control Russia, but make no mistake, this is and will be an attack on regular working class people.

trinovantes 5y ago
Just wait until we have money that expires
- tigerlily 5y ago
  To be fair, that feature would help eliminate corruption.
verdverm 5y ago
A US CBDC would likely be a private / public partnerships. They know that a government monitored account would never pass. The Fed will issue the currency and the banks (possibly thin banks) will manage the accounts. Normal means for law enforcement to gain history will be put in place.
- jqpabc123 5y ago
  In other words, it will work pretty much like it does now --- except transactions won't necessarily need to run through 3rd party gatekeepers (banks/Visa/Mastercard) and can be P2P instead --- straight from my digital wallet to yours. Those who argue against digital currency are too late --- most of the economy already runs on digital transactions.
  - verdverm 5y ago
    I would expect these to be permissioned systems, so it will still be going ng through 3rd parties. The govt is not going to have the population using non-custodial wallets. There will be no mining or staking.
    - jqpabc123 5y ago
      Look at the studies that have been done by the Federal Reserve. Their plans include digital wallets --- with credentials created and assigned by a bank partner but with the ability to be used P2P without any permission required --- just like cash. I assume this would involve a 2FA type security setup. A friend could transfer money to you using just your account ID to create and send you a transaction token. But to mug someone, you would need to not only take possession of their phone but also obtain their wallet authorization key. The mugger could then access only what is currently stored in the wallet.

ddaalluu2 5y ago

Cryptocurrency needs to be banned. It's a major factor in climate change

jqpabc123 5y ago
No need for a "ban". Just audit stable coins and expose any fraud that keeps them pegged without the backing they claim. This sort of fraud is illegal under current laws. No need for any new ones. Without fraud, the crypto market would wither and die.