Is This The Perfect Time For Central Bank Digital Currencies?

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Over the past several weeks, the public response to the coronavirus has caused widespread economic damage, shuttering businesses, fueling job losses and sharply lowering expectations of economic growth.

The global economy has already entered a recession, which began in March, according to Bloomberg.

To respond to these difficult conditions, governments around the world have started employing aggressive stimulus measures, ranging from sending checks to citizens to announcing emergency rate cuts.

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[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

While these efforts might soften the downturn and hasten a recovery, policy makers could make far more well-informed decisions if their respective economies were leveraging central bank digital currencies (CBDCs).

By harnessing these digital currencies, government officials could potentially obtain a far better sense of key business activity, for example where transactions are taking place and which ventures are drawing investment dollars.

This information could help them pinpoint industries that are most in need of assistance, and also make it easier to evaluate the results of any stimulus.

The ‘Undeniable’ Potential Of CBDCs

John Iadeluca, founder & CEO of multi-strategy fund Banz Capital, emphasized the possibilities presented by CBDCs, describing their potential as “undeniable,” considering the economic fallout “caused by the coronavirus.”

“U.S. policymakers and citizens alike are seeing things like stimulus checks face heavy roadblocks, which can be solved via CBDCs.”

The IRS recently started mailing these checks to U.S. citizens, but distributing them could take as long as 20 weeks, according to a House Ways and Means schedule reported on by MarketWatch.

While these delays could prove frustrating for recipients, they could be eliminated through the use of CBDCs, claimed Iadeluca.

These digital currencies could provide “citizens access to these pivotal payments in a fraction of the time through streamlined, immutable monetary systems,” he maintained.

In addition to easing the distribution of stimulus checks, issuing a CBDC “would also open up the doors to novel monetary policy initiatives such as ‘air drops’ to citizens to stimulate spending,” said Matthew Dibb, cofounder and COO of digital asset management platform Stack.

Sector-Specific Stimulus

Further, leveraging CBDCs could potentially make policy actions aimed at stimulating specific industries more effective.

“Recently, heavy amounts of capital flowed out of the travel industry faster than an unprepared economy could track, resulting in a $25 billion bailout,” noted Iadeluca.

“However, in a CBDC environment, virtually all transactions are zero-knowledge encrypted, enabling privacy and precision to where an impending domino effect from something such as tumbling airline industries could be categorized and calculated,” he stated.

‘Myriad’ Privacy Considerations

In spite of all these potential benefits, some digital currency enthusiasts have offered dire warnings about the negative impact that CBDCs could have on the privacy of businesses and consumers.

“Since CBDCs are necessarily centralized, this centralized control over the network would give CBs access to an unprecedented amount of data about individual and collective transaction patterns,” noted Jake Yocom-Piatt, project lead for Decred.

“While there are positive aspects to this, e.g. an ability to be more accurate and measured when issuing credit where it is deemed necessary, there are also myriad negative privacy implications,” he stated.

“This centralized control means that individuals or groups can be both instantly surveilled and/or deplatformed at the whim of the CB, versus an individual commercial bank doing similarly.”

Jesse Proudman, CEO of crypto hedge fund Strix Leviathan, also weighed in.

“While CBDCs present advantages in terms of transaction speed and transparency, those benefits come with the cost of privacy,” he stated.

“The broad-based adoption of CBDCs for fiscal stimulus will move consumer spending data out of the hands of private companies and onto public ledgers that will be monitored by central governments.”

Proudman claimed that while we don’t have privacy now, the situation would become even worse if central banks started issuing their own fiat currencies.

“There is a meaningful difference in transaction data residing across a patchwork for private companies, vs. transaction data residing in a government monitored ledger where each account is clearly identifiable to a citizen,” he noted.

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether and EOS.

Follow me on Twitter or LinkedIn.

I am a financial writer and consultant with strong knowledge of asset markets and investing concepts. I have worked for financial institutions including State Street, Moody’s Analytics and Citizens Commercial Banking. An author of more than 500 publications, my work has appeared in mediums such as New York Post, Washington Post, Fortune, CoinDesk and Investopedia. Previously, I created all the industrial finance training for a company with more than 300 people. I have spoken at industry events across the world and delivered speeches on financial literacy for Mensa and Boston Rotaract. I currently hold Bitcoin, Bitcoin Cash, Litecoin, Ether and EOS.

Source: https://forbes.com

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What is a Central Bank Digital Currency? How can it impact an economy? How does this affect our daily lives? Watch our latest video be informed. #BittByBitt #Bitt

Digital Yuan Can Replace Cash If Four Conditions Are Met: Former Bank of China President

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The digital yuan can replace cash if it meets four conditions: greater efficiency, lower transaction costs, enough economic scale with commercial value, and people’s acceptance.

Former President of the Bank of China Li Lihui has said that the launch of the digital yuan is close and imminent. According to Li, the currency, which is currently at testing phase, could replace fiat currency in China if it meets four conditions.

The imminent launch of the currency has garnered excitement among investors and online searches about the impact of digital yuan and cryptocurrencies, in general, has seen a surge. In a live streaming talk on People’s News on 5 May, he said that the digital currency is different from other payment platforms such as Alipay and WeChat pay in the fact that the digital yuan has no association with any third party. In addition, he mentioned four conditions that need to be met in order for Yuan t replace other forms of payment.

“Whether the digital Yuan can become the dominant form of currency and mainstream payment means, depends on whether it has greater efficiency, lower transaction costs, enough economic scale with commercial value, and people’s acceptance.” Image Courtesy: Pixabay

By Muskan Bagrecha

Please follow my Instagram: http://instagram.com/arminhamidian67

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China is set to introduce its own digital currency. Experts are predicting that the digital currency will be used to allow the government and central bank to watch over what people spend their money on. With the aim to replace cash, China’s digital currency is likely to be more akin to electronic money stored on a physical medium. Central bank governor Yi Gang said the currency may be associated with existing electronic payment systems like the WeChat and AliPay apps. Subscribe to our channel here: https://cna.asia/youtubesub Subscribe to our news service on Telegram: https://cna.asia/telegram Follow us: CNA: https://cna.asia CNA Lifestyle: http://www.cnalifestyle.com Facebook: https://www.facebook.com/channelnewsasia Instagram: https://www.instagram.com/channelnews… Twitter: https://www.twitter.com/channelnewsasia

Privacy Centric Digital Currency PIVX Partners with UFC Fighter Cris Cyborg to Push Crypto Awareness – Alexander Lielacher

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PIVX emerged in early 2017 and quickly gained in popularity and value due to its community-focused approach and the continuous implementation of innovative new technologies for its digital currency. For example, PIVX was the first cryptocurrency project to allow for anonymous staking, called zPOS. The partnership with Cyborg aims to bring more awareness to the digital currency and blockchain technology as a whole and is one of several sports sponsorships that PIVX has been involved in since its launch. To date, PIVX has sponsored a Polish soccer team, a Dutch field hockey team, and the surfer Tarnea O’Meara………….

Read more: https://btcmanager.com/privacy-centric-digital-currency-pivx-ufc-fighter-cris-cyborg-crypto-awareness/

 

 

 

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The Cryptocurrency Job Market Is Exploding (Infographic) – Rose Leadem

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It can feel like a new cryptocurrency is popping up every hour, and that’s because they basically are. There are more than 1,500 tradeable cryptocurrencies. In 2017 alone, there were between 2.9 and 5.8 million people using crypto wallets throughout the year, compared to 0.3 to 1.3 million in 2013. There’s a $320-billion-plus market cap across all cryptocurrencies today.

It’s safe to say, the crypto market is growing. While this growth has helped some people strike it rich, it’s also benefited the job market. Between December 2016 and December 2017, there was a 207 percent increase in job postings for Blockchain positions on Indeed.com.

While the term “crypto career” might bring to mind technology and engineering professionals, there are a variety of jobs within the field, ranging from full stack developers to compliance officers and community managers. If you’re interested in one of these crypto careers, it might be a good idea to move out west. Unsurprisingly, the tech-savvy state of California employs nearly 30 percent of the country’s crypto employees — the most of any state. Of course, if moving across the country is out of the picture, another 15 percent of crypto jobs in the U.S. are remote.

To learn more about crypto careers, check out CoinList’s infographic below.

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