Lisk, Steemit, Agentic UK on Why Banks Want Own Cryptocurrencies

By September 20, 2016Bitcoin Business

Amidst news of major banks, both government and private , considering developing their own Blockchains for internal use, a question has to be asked: is there even a point? Given the seemingly self-defeating nature of using decentralized currencies in highly centralized operations, Cointelegraph asked top industry experts from Agentic UK, Lisk and Steemit about their opinion on the matter. Lucas Cervigni, Managing Director of Agentic UK , explains: “Recently, central banks have taken the Cryptocurrency asset to the next level by starting to research Cryptocurrencies of their own. As modern banking works under the fractional reserve system, this research makes sense. Through this system, banks are able to issue loans as long as they keep 10% in reserve. In turn, this creates money with each loan. That is not possible with Bitcoin and therefore the banks have begun considering centralized and government controlled cryptocurrencies. However this is a serious matter for the banks to consider, as should the central system issue all of the money, there is no doubt the dynamics of the fractional reserve system could change. Ultimately, the smaller banks could be left out of business.” State banks eyeing Blockchain People’s Bank of China (PBoC) announced on their website about their own digital currency conference, urging their team to speed up efforts to release its digital currency. Bank of England and Bank of Canada have also considered developing digital currencies. These types of currencies are called Central Bank-issued Digital Currency (CBDC). What are the implications of CBDC? To create a cashless society, steal the spotlight from Bitcoin and other privately-issued currencies, or to achieve a more accurate monetary policy? Banks want control Ned Scott, Founder of Steemit , thinks the bank-issued cryptocurrencies will differ from the protocols we got accustomed to: “It would be interesting to see […]

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