Benoit Coeure, one of the six members of the Executive Board of the European Central Bank (ECB), spoke at the Bank for International Settlements (BIS) about the 3C challenge – cryptos, cyber and central counterparties (CCPs). In the part of his speech about cryptos, he said: “Few remember that Satoshi embedded the genesis block with a Times headline from January 2009 about UK banks’ bailout. In more ways than one, Bitcoin is the evil spawn of the financial crisis.”
He continued: “Lightning may strike me for saying this in the Tower of Basel – but Bitcoin was an extremely clever idea. Sadly, not every clever idea is a good idea. The opportunities of the blockchain are many, but the problems of Bitcoin are also plentiful. I believe that Agustín Carstens summed its manifold problems up well when he said that Bitcoin is “a combination of a bubble, a Ponzi scheme and an environmental disaster.”
After getting the Bitcoin introduction off his chest, he moved to central bank digital currency (CBDC) saying that central banks are evaluating using distributed ledger technology (DLT) to issue their own digital currencies. Earlier this year, ECB and BIS published a first study on CBDC. Mr. Coeure said that “this is a particularly pressing issue in countries where demand for cash has been declining sharply.”
Perhaps the most interesting message was that 69% of central banks are conducting work related to CBDCs while the remaining ones are typically either small in size or facing more pressing challenges. But he also added that most of the central banks are still at the early stage of studying digital currencies and that CBDCs are unlikely to be issued within the next decade.
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ECB says that 69% of central banks are researching CBDC written by Larry Cermak @ https://www.theblockcrypto.com/tiny/ecb-says-that-69-of-central-banks-are-researching-cbdc/ November 16, 2018 Larry Cermak