Question about crypto.

[DebSchmal]

Hello. For what purpose do banks create their own cryptocurrencies?

[MongiIG]

12 minutes ago, DebSchmal said:

Hello. For what purpose do banks create their own cryptocurrencies?

Hi @DebSchmal,

That is a great question you have asked. Check out this article I found to be interesting, maybe this could answer your question in greater detail https://www.africanexponent.com/post/8920-why-do-banks-create-their-own-cryptocurrencies

Let me know your thoughts on it after you read it.

 

All the best - MongiIG

[Caseynotes]

Interesting twitter thread.

Any move to a Central Bank Digital Currency (CBDC) requires removal of crypto currencies. That is the Rubicon moment: if they kill the cryptos, CBDC comes next.

3 questions arise:
i) What justification would they use?
ii) How would they do it?
iii) What would be the time interval between killing crypto & CBDC?

The justification is, of course, urgent action on climate change: massive & instant carbon reduction from shutting down digital miners is a big win from COP26. They can also cite consumer protection benefits too!

The how is actually quite easy: they announce they're going to kill the cryptos & peeps will be able to claim limited compensation. Everybody sells, value collapses, compo amounts to, what, 5% of pre-announcement value, if that? Govts say, there you go, we said they were risky

As to timing, I think they'll use COP26 for the international agreement to shut down the cryptos. Govts set up parallel structures for the compo from the kill-date, probably 31 December

Finally, the clue to all this is in what they deny: Rishi has denied using Britcoin to replace cash. Not to replace nongovernmental currencies.

Jules 
@j_preparedmind

 

Additional;

FinanceFeeds @FXFinanceFeeds
38m
The Bank Of Jamaica, in a ceremony, has minted the first instalment of its central bank digital currency (CBDC) JMD on August 10 as it looks set to adopt digital currencies in the coming months.

[Naoto]

Essentiall, banks want to have a better control over the country’s circulation and the blockchain helps improve centralized system. China and India seems to be competing against Litecoin but other countries are more interested in working with DeFi in tandem with central banks.

[Guest Yuan Pay Group]

You have asked a good question. Cryptocurrency is more secure. It would be a great change in the mechanism in bank.

[Risandrach]

🤔

[Oceane]

banks need to have their own crypto as the banks know that the young are into crypto.

The world is changing and the young are not into 8-5 but into things like axie game so they can be involve in NFT.

Just google axie scholarship and you will be suprise how many people post their 'resume' on social network to join the axie game.