Reserve Bank of Australia Will not Issue its own Digital Currency
Cryptocurrency markets are still a problem for most regulators and governments. It is evident this new form of money becomes a very real threat to any financial institution on the market. Reserve Bank of Australia governor Philip Lowe is concerned over this speculative mania surrounding Bitcoin and other cryptocurrencies. Such comments often fall on deaf ears, though, as everyone wants to strike it rich overnight.
Central banks all over the world would rather not see people invest in cryptocurrencies. These digital assets are too fickle and volatile. Moreover, they can’t be controlled or supported by banks and governments in an official capacity. This situation has not caused too much friction until the year 2017 came around. The soaring value of all cryptocurrencies resembles a mass hysteria attack of sorts. Everyone is speculating on cryptocurrencies, as there’s lots of money to be made. However, said money can be lost equally as quick, which is a far less favorable outcome.
Reserve Bank of Australia Sees Little Merit in Bitcoin
According to Reserve Bank of Australia governor Philip Lowe, these cryptocurrencies will not replace conventional money. It is highly doubtful anyone expected a different response at this time. Bitcoin has become a store of value rather than a currency these days. Its fees are too high and transaction delays are far too common. That said, the general public is still attracted to the allure of this virtual gold rush. It is a grave concern for the Reserve Bank of Australia.
How all of this will play out in Australia, remains to be seen. The local government recently amended its taxation guidelines regarding Bitcoin. By removing the double taxation, the ecosystem has been given a second chance to thrive. This was all before the current price hype became visible, mind you. No one can stop people from buying and using cryptocurrencies. Not even the Reserve Bank of Australia can do something like that. Nor is that in their best interest whatsoever.
Surprisingly, the Reserve Bank of Australia has no plans of issuing its own digital currency. Whereas other institutions are leaning toward this option, that’s not the case in Australia. Or at least not for now, as things are always subject to change. For now, there is no case for issuing “digital banknotes” whatsoever. An interesting future lies ahead for all cryptocurrencies, especially in Australia.
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US Regulators Issue New Cryptocurrency and ICO Warning
As more and more governments are moving to regulate cryptocurrencies, US regulators have started to warn investors from cryptocurrencies and ICOs. Is the Bubble Ready to Burst The cryptocurrency market had a phenomenal bull run this year. As the cryptocurrency industry is constantly improving and innovating, many finance experts believe that the hype behind it is just speculation. Experts believe that the global cryptocurrency market may be in a bubble state, and it might burstnRead MorenThe pos
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Banks Issue Last Minute Warning About Risks Of Bitcoin Futures, Ask Regulator For Review
As we countdown to the launch of bitcoin futures trading on the CBOE (10 December) and CME (18 December), the big banks – via the Futures Industry Association – have suddenly got cold feet about the risks. We don’t blame them, somebody’s going to get hurt, the only question is who. The banks are …
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Australia’s CommBank Plans to Issue a Bond on the Blockchain
The Commonwealth Bank of Australia has revealed a plan to issue a bond over a blockchain system in collaboration with a major world issuer.
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Facing Hyperinflation, Venezuela to Issue Oil-Backed Cryptocurrency
n Venezuelan President Maduro has announced that the country will issue its own cryptocurrency called the Petro as an alternative to the Bolivar amid hyperinflation pressures.n
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Bank of Canada may Issue a National Digital Currency Soon
Central banks all over the world are legitimately worried about cryptocurrencies. This new form of money can’t be regulated nor controlled. Countering this new hype will be difficult unless banks get on board with the program. Bank of Canada thinks now is a good time to research their own digital currency. Although the name remains unknown, they are not the first financial institution to contemplate such an approach.
Central bank digital currencies are a very unusual development in the financial sector. More specifically, these currencies will not replace cash. Instead, they are complementary coins for the digital age and a cashless society. So far, no major bank has made any significant progress in developing such a currency. Bank of Canada may be the first to achieve some breakthrough in this regard. A paper has been circulating which focuses on creating a native digital currency.
Bank of Canada Keeps all Options Open
Most people don’t associate Canada with cryptocurrency. Ever since some of the big exchanges shut down, things have become pretty quiet on that front. However, there is still an active Bitcoin community. Bank of Canada has taken notice of this growing interest in cryptocurrency and devised its own countermeasures. It remains unclear if and when the central bank will issue a digital currency, though. For now, this option is merely being explored. Nothing has been it in stone just yet, and it may never even happen in the end
It goes without saying this concept has received some criticism as well. Any government intervention is often scrutinized, which is only to be expected. When it comes to new forms of money, anything issued by a government or central bank is greeted with skepticism. This situation will be no different for the bank of Canada, which is only to be expected. After all, it remains to be seen how this digital currency is backed by real value. Cash isn’t, and it is doubtful a digital currency will fare any better.
It remains to be seen if the Bank of Canada decides to explore this option further Putting together a thorough document is rather commendable, to say the least. Just because it exists as a piece of paper doesn’t mean any piece of code will ever be written. Rest assured we will see more banks explore this option in the future, though. Cryptocurrencies are here to stay, and financial institutions need to come up with a solution. Whether or not they can, remains to be determined.
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New Mexico College to Issue Digital Diplomas via Blockchain
Last month, the Massachusetts Institute of Technology (MIT) announced its intention to issue diplomas to over 100 graduates through the use of blockchain technology. Now, it seems yet another university has decided to do the same thing. Central New Mexico Community College (CNM) recently announced its plan to offer students blockchain-based credentials after finishing their studies. Secure and verifiable credentials for students According to CNM, the digital credentials system will begin on the 15th of December. Once it does, students who wish to have easily verifiable yet secure higher education diplomas can choose to have them issued via blockchain technology. The benefits are major:
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Who Needs a CSD? Nivaura to Issue First Regulated Bond in Ethereum
Blockchain startup Nivaura will today initiate its first bond denominated in ether. And, notably, the issuance will be conducted on a blockchain.
CoinDesk
The Centralization Issue of Scaling Bitcoin Solely by Block Size Increase
A block size increase from 1 MB to 2 MB or even to 8 MB will likely not lead to the occurence of severe technical issues that could negatively affect the bitcoin blockchain in the long-term.
But, as bitcoin and security expert Andreas Antonopoulos explained at the ‘Bitcoins in Bali’ meetup on June 27th 2017, if the block size gets increased in orders of magnitude at a rate that is proportional to the increase in the user base, a difficult problem will inevitably emerge, wherein bitcoin transitions from a decentralized to centralized system.
The current system of Bitcoin Cash is viable in solving the short-term scalability solutions of bitcoin. Transaction fees are low now, but as the network of Bitcoin Cash grows exponentially and the user base increases with it, there is a certain limit to which the supposed unlimited block size cannot handle.
“3 million today. Let’s say that in two years, we have 30 million people. To maintain exactly the same level of fees as we have today, we need a block that is 10 MB in order of magnitude bigger. Five years from that, bitcoin gets really successful and we need to get 300 million people to use it. Now we need 100 MB blocks,’ said Antonopoulos.
Eventually, as the trend follows, the block size increases to 1 GB, to a point in which independent node operators can no longer cope with updates and verify transactions. Antonopoulos added:
“If my block takes 11 minutes to validate, then i’m off the blockchain, which means fewer people can validate independently, which means the system becomes centralized. With which one of these increases, fewer people can participate in the validation process, fewer people can participate in storing the data, and fewer people can participate in being independent actors. We go from a system that is decentralized to a system that gradually gets more and more centralized,” said Antonopoulos.
Hence, some on-chain scaling could benefit the bitcoin industry and businesses within it in the short-term, as an increase from 1MB to 2MB is not sufficient to impact the decentralized ecosystem of bitcoin. But, as the block size increases become larger over time, bitcoin or any other cryptocurrency in that matter will suffer with a serious centralization issue, which fundamentally defeats the purpose of operating a decentralized blockchain network.
Bitcoin is globally acknowledged and adopted as a robust store of value and a safe haven asset. It is a settlement network that has on-chain scaling problems which can be solved through second-layer scaling.
There exists a clear limit to the amount of scaling block size increase and on-chain capacity increase can provide and in order to maintain the decentralized nature and censorship resistance of bitcoin, it is important to pursue innovative scaling solutions that provide alternative ways for businesses to provide lower fees and an efficient platform for users.
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