According to a recent press release, central banks are working on issuing digital cash to counter the rising Bitcoin. A philanthropic investment firm—Omidyar Network—today announced its investment in eCurrency Mint, a relatively unknown start-up developing a technology that enables central banks to issue their digital fiat currency called eCurrency.
According to a WSJ report, founder and chief executive of eCM, Jonathan Dharmapalan, said that the start-up has held meeting with over 30 central banks, of which two have agreed to issue the digital currency. eCurrency will have the same legal and monetary status as notes and coins.
Tilman Ehrbeck, partner at Omidyar Network, said: “eCurrency can help accelerate financial inclusion by turning today’s digital value systems into sovereign-backed national currencies, increasing trust and addressing key issues currently hindering the adoption of digital value systems (such as interoperability).”
Economic Benefits
The press release states that eCurrency will provide savings benefits to both governments and taxpayers: the process of minting and distributing the digital currency is expected to cost one-tenth of the total cost of printing, securing, distributing and destroying paper money.
Research conducted by Citigroup and Imperial College has suggested that even a 10% growth in the adoption of digital money across 90 countries can lead to $150 billion of additional consumer spending and a whopping $100 billion more in tax collections.
The backing of central banks will provide much-needed confidence in using the digital money. A big chunk of the global population still prefers traditional methods of payment such as cash and credit cards. The concerns related to security and interoperability are also expected to be alleviated following the issuance by the central banks.
We all knew this was coming for Bitcoin. After all, not all central governments are keen to let Bitcoin become the prominent global cryptocurrency. But will it really affect Bitcoin? Let time be the judge of this.
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So let me get this straight… after 6.93 years of Bitcoin (at time of writing),Central banks, who for the last few years have criticized Bitcoin non-stop at every opportunity ever since the media started covering blockchains… now admit at this late hour they are now ready to do battle against the publicly owned Bitcoin.
Central banks really are loosing it !
“So let me get this straight… after 6.93 years of Bitcoin (at time
of writing),Central banks, who for the last few years have criticized
Bitcoin non-stop at every opportunity ever since the media started
covering blockchains… now admit at this late hour they are now ready
to do battle against the publicly owned Bitcoin.”
No, they don’t. This platform is going to be different.
“Central banks really are loosing it !”
No, they’re not.
So are you saying that bitcoin will fall?
The only one who is presenting it has a “battle” is the one who wrote this article. He’s the one who’s lost it. the Central banks can take over Bitcoin at any time.
Would you really want to transaction with FedCoin?
We already have digital fiat. #MissingThePoint