With Burkhard Balz, a Bundesbank Executive Board member to crypto coins logs up-to-date word. Stablecoins to be praised, Bitcoin and co., however, criticized.
Libra will continue to be evaluated as a risk
Policy and banks have, so far, not necessarily as friends of digital currencies, from Bitcoin to Zcash. The German Finance Minister, Olaf Scholz, is only one of the critics, the last heavy rhetorical guns had to drive in the direction of the Libra Foundation up. Also in the case of the Bundesbank, there have been repeated warnings. Although the German Bundesbank at the end of 2019 its own Blockchain had completed testing successfully. In terms of Facebook’s Libra, called for representatives of the Bundesbank-Board, strict control of the project Libra. But there are also developments on the crypto-market, which the Bundesbank are quite positive and open. Ethereum, Ripple and other Altcoins are not but this is the best of intentions. Despite all the concerns about digital currencies such as Bitcoin, Burkhard Balz, member of the Executive Board of the German currency, Keeper, found words of praise for a field of the crypto industry.
Stable coins: a compliment for Central Bank policy?
In the context of a speech at the University of the South-African metropolis of Cape town Balz commented positively to the so-called stable coins. Interestingly, the Expression: Also, Libra is planned as a Coin with coupling to Fiat money. To the extent there is here some misunderstanding. Balz called stable coins, such as, for example, in the US Bank JP Morgan some time ago, started as a “compliment”. To be more precise: as a “compliment to the monetary policy of the Central banks”. The Federal Bank Board has based its assessment of the confidence in the national currencies, which would be raised by stablecoins to the expression. Crypto-currency as such, however, classifies courtship as Coins without “any intrinsic value”. So he launches into the same Horn as the Minister of Finance, and many other critics of digital currencies in international politics. A too high Volatility (volatility) is too high a risk for everyday use.
Stablecoins well crypto currencies a bad thing?
The stability of “real money” in the Background of the stable coins, however, a concern for safety. The classification as a “Non-money” in the case of digital Coins reasoned courtship so that all Token, many of the important functions of a currency are missing. So the Token was not suitable as a unit of account and storage model for capital. With views of the Bitcoin of the Bundesbank Executive Board considers also the forecast of a future stable price than wrong. The ceiling is 21 million BTC units does not lead to the hoped-for rate stability. The developers of Stablecoins not share the opinion of courtship, probably without exception. Critical courtship also assess the activities of technology companies such as Facebook or Google. Currencies of the company and that this can be a problematic issue. You should only be under strict legal regulatory standards issued. That Facebook is a “Wake up call” for Central banks, also confirmed by Balz, in his speech.
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