South Koreas central bank has published a new working paper analyzing a dual-currency regime by pitting cryptocurrencies against traditional fiat currencies. Fiat currencies have been historically known to decrease continuously, the authors confirm, due to inflation and the factor of new money pumped in to the supply by the central bank, also known as quantitative easing. Bitcoin, in stark contrast, has a fixed supply which would imply a deflationary bias, the authors note. However, security or trust issues the decentralization of digital currency and the absence of insurance provided by governmental authorities may prevent digital currency from being used as a store of value. Instead, digital currency may be used as a medium of exchange dominantly.
Do you agree with this research result?
Nothing new.The central bankers still think that decentralization is a problem.It`s not...
We don`t need a government to secure the currency.If the people trust a currency,they will use it without
premission from the government.
Yes exactly the bitcoin is too strengthen that id dont need any security of the government. In fact there are the governments that came to it and accepted it because they know it better that the future is of the bitcoin and the alts will also survive with it.
No one is asking from any sort of security for the crypto the only demand of the people who have adopted the Bitcoin is to accept it as a legal currency. The government is why not adopting the crypto for the moment only is due to certain legal issues i.e. the major government agreement are for the fiat stuff and it will take them to switch.