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Researcher: The World Does Not Need Crypto of the Central Bank by f21steem

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· @f21steem ·
Researcher: The World Does Not Need Crypto of the Central Bank

### Last month at the Singapore Fintech Festival, Director of the International Monetary Fund (IMF) Christine Lagarde called for the issuance of the central bank's digital currency (CBDC). He explained some of the benefits that CBDC has, such as financial inclusion, security and privacy.

### Lagarde also suggests that crypto like Bitcoin and others compete to become a new currency in a non-cash world. Bitcoin boom in 2017 and user growth and its development throughout 2018 show that this crypto will live for a long time.

> The revolutionary Bitcoin blockchain technology and its use as a currency have attracted the interest of Kevin Warsh, former US Federal Reserve (Fed) Governor and a Fed Chair candidate. In May 2018 ago, Warsh commented to the New York Times if he was chairman, he would explore a blockchain-based national crypto called "Fedcoin."

> However, several other parties at the Federal Reserve have different opinions about crypto. Invest in Blockchain launches, Fed researchers are not sure about crypto, especially national crypto ideas.

> Fed researchers Aleksander Berentsen and Fabian Schar wrote that central banks could easily make and publish their own crypto. But they also stated, "On the other hand, crypto traits are a sign of danger to the central bank. Namely, there will be no central bank that has an incentive to issue anonymous virtual money. The risk of his reputation is too high. "

> Berentsen and Schar said that making KYC regulations and anti-money laundering is important to prevent drug cartels, terrorists and other criminals from using free-flowing crypto properties.

> Moreover, they feel the central bank will become "hypocritical" when asking retail and commercial banks to implement and supervise the regulation, but the central bank itself does not do so.

> The two researchers explained that centralization would be needed in a central bank crypto so that it could no longer be called crypto, but ordinary electronic money. Berentsen and Schar said calling CBDC crypto was a mistake.

####  "If we eliminate the decentralized nature of a crypto, not much is left. Virtual money that is centralistic and unilaterally issued by the central bank is called central bank electronic money. This type of money can be issued long ago. The technology for issuing virtual money centrally has existed long before blockchain was created, "explained Berentsen and Schar.

> Therefore, Fed officials do not see the importance of issuing national crypto or other forms of electronic money. If they want, the Fed can do it long before Satoshi created Bitcoin and the birth of other crypto.

> It is the decentralized aspect of crypto that makes it very unique and popular. For example, Bitcoin is decentralized so it does not need to be regulated by a single entity or institution, has its own economic algorithm, is transparent and neutral, safe and reliable and has an adequate level of privacy.

> The world does not need a central bank crypto because there are already Bitcoin and various other crypto that are constantly being developed and improved by the crypto community. Public-issued crypto provides an advantage that central banks and governments cannot provide, and it seems that the Federal Reserve is aware of this.


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