U.S industry executives look for digital currency as the next major power to shake them
The Fed is considered to be some time away from creating its own centralized digital currency, however, investors are waking up to the notion that the next major market disrupter is the blockchain.
Big economies, as well as small ones, are beginning to pay attention to digital currency because of its usefulness as a less-concentrated method of payment in an increasingly cashless world.
In the short run, a digital dollar would look similar to bitcoins but have significant differences.
Instead of seeing rates that jump about wildly, the central bank digital currency will be a stable currency with extensive use. It will be highly regulated and managed by a central agency.
Huge question marks will be left unanswered until the Federal Reserve moves in. At this time, the energy is gathering in the country.
COPYRIGHT_WI: Published on https://washingtonindependent.com/ebv/us-industry-executives-look-for-digital-currency-as-the-next-major-power-to-shake-them/ by William Willis on 2021-04-20T07:55:48.467Z
Blockchain is because central banks are seeking to help with inter-bank transactions Uploading CSV files to an FTP and doing a continuous batch job to synchronize everyone's account balances instead.
So, you might use the blockchain like they have done in the past. To be clear, the situation isn't any different.
Explaining. Even if the Fed currency appears as "digital" in a bank, we'll have to think of it as being equivalent to having either one cent, one pound, two bucks, or four quarters. The money in my 401k is gaining interest whilst I'm asleep. Before I get paid, it's just a figment of my imagination. Even then, I'll have to use my regular bank to collect it. Even before someone asked, the expected monetary compensation, I was allowed to make a submission. And what use will it be? Is it hard money in any way?
True, but that would need autonomous nodes, or it would be no different from our current setup. You will find the “blockchain” becomes highly centralized and it will be at risk from attack when we turn the technology over to governments.
There is no appeal in a centralized, transparent or unrestricted supply, nor is there a limit on appeal in a limited fed scheme, that will be worse than Bitcoin; the reverse of Bitcoin is a transparent and bounded money system with a capped supply.
We'd be exactly the same as the new Federal Reserve scheme, but with some efficiency and by replacing the one point of failure in the process the single-point-of-of-failure model gets rid of. Can you remember when the federal government's machine went down and the banks couldn't transfer money around for a while?" A private blockchain could prevent that.