Banks developing their own e-currency that could destroy current slate of cryptocurrencies

Bitcoin Questions and AnswersCategory: General questionsBanks developing their own e-currency that could destroy current slate of cryptocurrencies
Timothy asked 3 weeks ago

Last updated on December 31st, 2017 at 07:33 pm

Hi,
Do you see any credence to this article?
http://www.economicpolicyjournal.com/2017/12/banksters-are-developing-their-own-e.html?m=1

1 Answers
Steven Hay answered 3 weeks ago

Hey Timothy,
 
I think it’s a little too dramatic. The title certainly smacks of doom-porn.
 
That said, sure, banks have been trying to develop a Bitcoin competitor for years. The problem is that for such a system to work, not only must people trust it but banks must trust each other and so must central banks. This is assuming there isn’t a single central controller, say the Bank of International Settlement or someone like that.
 
At this stage, it’s all speculation really. I certainly wouldn’t switch from decentralised, trustless Bitcoin to some sort of centrally-controlled digifiat. It’s true that regular people might, after all they switched from gold to gold-backed paper to totally unbacked paper without much complaint…
 
It’s far too soon to despair and assume the banks / govts will maintain their control indefinitely or even enhance it, just because they’re experimenting with blockchain.

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