Central Banks Explore Bitcoin
Published March 3, 2017
I want to give a quick update on what’s going on in the world in regards to Central Banks trying to create their own central currencies. The Federal Governor spoke today about the dangers of central banks seeking to do that. In his comments, I think he’s missing a very important reality, and that is that the private sector, so publicly distribute ledger and bitcoin blockchain, it’s been out to compete any government or bank attempt to create additional currency, because as soon as you take decentralization out of it and you have a centralized control system, it completely removes one of the main benefits. And, the private sector is going to innovate much faster than banks have ever innovated.
We see more innovation in FIN Tech in the private sector than we’ve ever seen in the banking system, and so it’s analogous to any of those that were around when the Internet came out and many governments, local governments, state governments, and also the large companies were seeking to create an intranet in order to operate and essentially control the kind of network in which they would do things. It did not sustain because the open public Internet became far superior, far faster, because the innovation that was happening on the cutting-edge. So there really isn’t any fear in my view, there isn’t any fear of a centrally controlled digital currency, but nonetheless, the Bank of England, the Bank of Sweden, the Bank of China and several central banks have been working towards that very thing.
Over the last year and half they have had their own blockchain research groups that have been investigating and creating their own digital currency (a version of bitcoin). Sorry folks, in the end it’s not going to work. So best of luck, but it’s a lot of time and money and energy that I think is chasing after nothing. I thought I would share this and get it out today.