[ad_1]<div _ngcontent-c14 = "" innerhtml = "
GettyGetty
(Disclosure: the author holds investments in bitcoins.)
Cryptocurrant enthusiasts have a secret fear. It is not that people do not use digital coins, causing the collapse of values and the cancellation of their investments; The cryptic fans believe that there will always be a demand for a digital currency that can be immediately transferred worldwide and for a negligible cost.
Their concern is that everyone will use only one digital currency, causing the collapse of values and the cancellation of investments throughout their own other coins.
The concern is that the US government, through the Federal Reserve, will release its "FedCoin" and make it the only currency allowed for US digital commerce. It would be bad enough, but if the government had pre-mined all those coins, it would also have the same control over the currency and its value that the Federal Reserve can now exercise on the dollar. He could tie his FedCoin to the fiat and, with the exclusive control of the blockchain, he might even be able to retroactively change the rumors in the blockchain, wiping out the transactions and seizing the resources.
The dream of a decentralized global currency, devoid of regulation and government interference, and fueled only by its users, would have been crushed by the government giant.
As central banks, like the Bank of England, have explored the possible role of blockchain in the banking system, experts have examined the issue of a FedCoin issued by the government with varying degrees of curiosity, enthusiasm is fear.
So far, those fears have not been realized. Central banks may be interested in the blockchain, but have shown little willingness to create their own digital currencies. Recently, & nbsp; however, the day the financial system detects cryptocurrencies may have taken a step forward.
At the end of September this year, Sean Neville and Jeremy Allaire of Circle, a fintech company, announced the release of USD Coin. The currency would be used to "make US dollars public and use those dollars on public Internet blockchains … Individuals and institutions can subscribe to this service to deposit US dollars from bank accounts, convert those dollars into usable tokens wherever they reach the internet. (subject to token compliance checks) and redeem USDC tokens and cash bank accounts. "
According to Circle, users must be authorized to handle electronic money; verified the anti-money laundering and compliance programs that meet the Financial Action Task Force standards; back all tokens on a one-to-one USDC / USD basis; and meet the reporting and review requirements established by CENTER, the consortium created to distribute the currency.
In fact, the company has created a new version of Tether, a digital currency anchored to the dollar.
Like Tether, USDC tries to solve the volatility problem of cryptocurrency. As long as a digital currency can jump or dive into double-digit percentage points in a single day, companies will not use it. They will not know what they should pay or how much they will receive. Pegging the value of a dollar currency gives that coin the value and stability of a greenback while still providing the mobility of a digital currency. A customer in China could send a USDC to a Kansas seller who would receive the money instantly and be able to convert it to dollars at a known rate.
So far so standard. The pegged digital currencies are not new, but the novelty is that Circle's support includes Goldman Sachs. This is not just another fintech company looking for a solution to the problem of cryptocurrency volatility. It is a part of the banking industry that shows the willingness to put its money in the creation of a digital currency.
The rise of cryptocurrencies would always attract the attention of large fish. Regulators, from FCC to Network of application of financial crimes, all showed interest in tokens, coins and Ico. Private equity and institutional investors are wondering if it's time to start putting their money.
If a company like Goldman Sachs were to start using a FedCoin type, the result could be a very different cryptocurrency environment. The volumes with which large banking institutions trade would make the currency too big to ignore. It could be useful, but it would be centralized and entirely under the control of the big banks.
Those fears, however, risk being exaggerated, and not just because the CENTRO defines itself as "decentralized and independent". The volatility that has supported bitcoin and that a FedCoin hopes to solve is shrinking. An estimate of 30 days a little later 2%& nbsp; for USD / BTC it may be high compared to other currency pairs, but it is much lower than the double-digit rates that have plagued the first few years of the currency.
Bitcoin still has a long way to go. It is still too unpredictable to function as an international digital currency. But as speculators have been expelled, volumes have increased and the number of coins in circulation has increased, so the volatility of the currency has been reduced. Bitcoin users have no reason to fear the ascent of a FedCoin, regardless of whether it is made by a Federal Reserve or an important bank. Instead, those institutions should fear the stable bitcoin.
Do I qualify?
">
(Disclosure: the author holds investments in bitcoins.)
Cryptocurrant enthusiasts have a secret fear. It is not that people do not use digital coins, causing the collapse of values and the cancellation of their investments; The cryptic fans believe that there will always be a demand for a digital currency that can be immediately transferred worldwide and for a negligible cost.
Their concern is that everyone will use only one digital currency, causing the collapse of values and the cancellation of investments throughout their own other coins.
The concern is that the US government, through the Federal Reserve, will release its "FedCoin" and make it the only currency allowed for US digital commerce. It would be bad enough, but if the government had pre-mined all those coins, it would also have the same control over the currency and its value that the Federal Reserve can now exercise on the dollar. He could tie his FedCoin to the fiat and, with the exclusive control of the blockchain, he might even be able to retroactively change the rumors in the blockchain, wiping out the transactions and seizing the resources.
The dream of a decentralized global currency, devoid of regulation and government interference, and fueled only by its users, would have been crushed by the government giant.
As central banks, like the Bank of England, explored the possible role of blockchain in the banking system, experts examined the issue of a FedCoin issued by the government with varying degrees of curiosity, enthusiasm and fear.
So far, those fears have not been realized. Central banks may be interested in the blockchain, but have shown little willingness to create their own digital currencies. Recently, however, the day the financial system has taken on cryptocurrencies may have taken a step forward.
At the end of September this year, Sean Neville and Jeremy Allaire of Circle, a fintech company, announced the release of USD Coin. The currency would be used to "make US dollars public and use those dollars on public Internet blockchains … Individuals and institutions can subscribe to this service to deposit US dollars from bank accounts, convert those dollars into usable tokens wherever they reach the internet. (subject to token compliance checks) and redeem USDC tokens and cash bank accounts. "
According to Circle, users must be authorized to handle electronic money; verified the anti-money laundering and compliance programs that meet the Financial Action Task Force standards; back all tokens on a one-to-one USDC / USD basis; and meet the reporting and review requirements established by CENTER, the consortium created to distribute the currency.
In fact, the company has created a new version of Tether, a digital currency anchored to the dollar.
Like Tether, USDC tries to solve the volatility problem of cryptocurrency. As long as a digital currency can jump or dive into double-digit percentage points in a single day, companies will not use it. They will not know what they should pay or how much they will receive. Pegging the value of a dollar currency gives that coin the value and stability of a greenback while still providing the mobility of a digital currency. A customer in China could send a USDC to a Kansas seller who would receive the money instantly and be able to convert it to dollars at a known rate.
So far so standard. The pegged digital currencies are not new, but the novelty is that Circle's support includes Goldman Sachs. This is not just another fintech company looking for a solution to the problem of cryptocurrency volatility. It is a part of the banking industry that shows the willingness to put its money in the creation of a digital currency.
The rise of cryptocurrencies would always attract the attention of large fish. The regulators, from the FCC to the Financial Enforcement Network, have all shown interest in tokens, coins and Ico. Private equity and institutional investors are wondering if it's time to start putting their money.
If a company like Goldman Sachs were to start using a FedCoin type, the result could be a very different cryptocurrency environment. The volumes with which large banking institutions trade would make the currency too big to ignore. It could be useful, but it would be centralized and entirely under the control of the big banks.
Those fears, however, risk being exaggerated, and not just because the CENTRO defines itself as "decentralized and independent". The volatility that has supported bitcoin and that a FedCoin hopes to solve is shrinking. A 30-day estimate of just over 2% for USD / BTC could be high compared to other currency pairs, but it is much lower than the double-digit rates that have plagued the first few years of the currency.
Bitcoin still has a long way to go. It is still too unpredictable to function as an international digital currency. But as speculators have been expelled, volumes have increased and the number of coins in circulation has increased, so the volatility of the currency has been reduced. Bitcoin users have no reason to fear the ascent of a FedCoin, regardless of whether it is made by a Federal Reserve or an important bank. Instead, those institutions should fear the stable bitcoin.
