Post
Topic
Board Economics
Re: new central banks currenicies vs fiat currency?
by
teosanru
on 29/10/2020, 06:07:35 UTC

the goverments have plan to create their own cryptocurrenicies, so the btc and eth was just testing currencies to see how it works and get people to use with cryptocurrenies?
first whats wrong with fiat currency? the cash is works good nothing wrong with this.
second how they are going to control how much to issue the currency and how the value will be backed?
and by who the transparanscy is guranteed?

I think the ease of doing cross border transactions with a technology which automatically keeps a ledger and accountability of all the transaction is what is fascinating for the banks about cryptocurrencies. India shared some plans that they are working on development of a central cryptocurrency called "Laxmi". Actually the focus of these currencies won't be on decentralisation and they won't be backed by anything. Even BTC isn't backed by anything. It would be backed by the technology and commitment from the government but obviously these will never be with limited supply like Bitcoin is. Governments would always want to have the control of the money in the economy so these cryptocurrencies might have the facilities of coin burn and coin creating pretty easily.