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CBDCs, Not Crypto, Will Be Cornerstone of Future Monetary System, BIS Says
- dexwiz 4y agoMoney was a technology long before crypto. Those in power have been using their control over money to leverage control over the physical world for millennia. In modern times this control has belonged to national governments, but historically religious institutions like the Knights Templar also had that power. They were never going to give up this control. Crypto has only lived this long because it was a fantastic way to launder money. Now that block chain analysis has advanced to a point where crypto is not the cloak it used to be, the rich and powerful no longer have a purpose for it. The digital currency portion of crypto is definitely the future, but it will not be run by those with the most servers.
- whoomp12342 4y agoSo... centralize it and put it on the block chain so our cash can be better tracked? No thanks. This seems to put more power in the hands of a few.
- deleted 4y ago[deleted]
- verdverm 4y agoIt depends on the country. The eCNY is like you describe, the people will have no choice long term. The West will not accept this and a public-private partnership will likely play out, where you are still working with a bank as an individual, but there are efficiency gains in the plumbing.
- andrewdubinsky 4y agoThe fact that the Bank for International Settlements stated this aloud says it all. It's already over, they just don't know it yet.
- anm89 4y agoCBDCs have NOTHING to do with blockchain or cryptography or cryptocurrencies. They are digital in the sense that your credit card is digital which is to say that the liabilities exist in their base form on a digital (computer) medium, not physical(paper) medium. You could choose to incorporate a blockchain in a CBDC implemnentation but why would you. Central banks have central in their name whereas a core value proposition of blockchain is decentralization. The Fed isn't going to wake up tomorrow and decide it wants to decentralize the dollar.
- verdverm 4y agoNot all blockchains require decentralization. There is a nice mapping between immutable ledgers and accounting. Using an open source technology also seems like a win for governments who are notoriously bad procuring software.
- not_really 4y agoDecentralization is an important enough property of a blockchain, that it could be argued that a blockchain without decentralization is not a blockchain. Banks, governments, and even Facebook continue to come up with "federated blockchains", boasting fast transaction times and private data, but butchered consensus mechanisms. At the end of the day, they are using an expensive database that in some way or other defeats the point of using a blockchain.
- 0des 4y agoblockchain has nothing to do with any of this. it is just serialized mutually dependent hashes, as the paper suggested originally.
- verdverm 4y agoNot everyone uses "blockchain" as only for the public-permissionless type. Much like we have to accept that "crypto" now mainly refers to shitcoins, the crypto community will have to accept that "blockchain" has a wider meaning for most people. It's not as if public-permissionless blockchains are all that decentralized, so the bar is pretty low on that measure.
- jl2718 4y agoBecause right now international settlement happens with truckloads of cash and armies of money counters.