Friday, December 15, 2017

With the rising popularity of cryptocurrencies, central bank's around the world are ready to create their own digital currencies

Over the past month we have written about Russia's trek towards the creation of the Crypto-Ruble, and China's plan to create a digital RMB.  However thanks in large part to the growing popularity of cryptocurrencies, central banks, particularly in the West, are beginning to jump on board this phenomenon in a big way.

Sweden’s Riksbank, the world’s oldest central bank, is exploring the possibility of a digital register-based e-krona; the Reserve Bank of New Zealand is researching whether its physical currency could be replaced by a digital alternative; the Bank of England is trialling blockchain-like systems; the Monetary Authority of Singapore is examining the use of distributed ledger technology for clearing and settlement of payments; and the PBoC said in October that it had completed tests on algorithms for a prototype of its own digital currency. 
Now the Reserve Bank of Australia (RBA) has entered the fray with an all too familiar refrain. 
We’re paraphrasing…Bitcoin is bad, the realm of criminals and little more than a speculative mania, but the technology underlying Bitcoin has great potential, which we can exploit in time with our own “superior” digital currency. - Zerohedge
Perhaps the public should not be surprised that central banks are ready to jump into the crypto/digital game while the iron is hot, because we must remember just last year their clarion calls to eliminate physical cash, and now they are receiving a gift in their hands by people voluntarily moving out of cash and into digital currrency.

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