Central Banks: 2 unexpected articles from the St. Louis Federal Reserve. TLDR quick overview.
Most of us feel or know in crypto/blockchain space that liberty and economic freedom is being squeezed from humanity by central banks and politicians.
Here are a couple things for us to read this week and a quick overview of them for you, since we live in a TLDR society today.
The first examines the advantages and disadvantages of a Central Bank-issued cryptocurrency.
This is a must-read.
Authors Aleksander Berensten and Fabian Schar ultimately conclude that the permissionless (i.e. pseudonymous) nature of cryptocurrencies precludes Central Bank involvement — control over KYC and AML procedures is a must.
Instead, Central Banks may be encouraged to issue a permissioned variation of digital assets, which would have a disciplining effect on commercial banks.
However, the concluding paragraph is incredibly significant and aligns with a vision of how things will eventually play out:
“In general, we don't think that a central bank should be in the business to satisfy the demand for anonymous payments. We believe that such a demand can and will be perfectly satisfied by the private sector, in particular through cryptocurrencies.
History and current political reality show that, on the one hand, governments can be bad actors and, on the other hand, some citizens can be bad actors. The former justifies an anonymous currency to protect citizens from bad governments, while the later calls for transparency of all payments. The reality is in between, and for that reason we welcome anonymous cryptocurrencies but also disagree with the view that the government should provide one.”
The second article addresses the similarities between crypto assets like Bitcoin and regular currency.
Links/sources:
Thanks for Reading!
Good news about crypto currencies I hope It would be the best
meep
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