In a conversation with the Cointelegraph at the Money 20/20 conference the CEO of the Dash Core Group, the company around the crypto currency Dash, gave his prognosis on the development of crypto currencies. In his opinion, central banks will produce their own crypto currencies in the future. However, this would call into question the decentralised system of the blockchain, as the banks would again be the leaders. Could Ryan Taylor’s forecast be true and what impact would it have on crypto currency trading and the financial world?
Dash CEO Ryan Taylor: Central Bank-Issued Cryptocurrencies Are the ‘Inevitable Future’ pic.twitter.com/CIymFSMDBm
– Karel Rodriguez (@CubanKarel) October 24, 2018
Central banks soon issuing crypto currencies?
Ryan Taylor’s vision for the future is clear. He firmly believes that central banks will launch their own crypto currencies in the near future. At the same time, however, he says that it will depend on the users themselves which currencies they will support or use as payment methods. So it is still in the hands of the buyers whether they want to support state currencies. And also the stock exchanges and brokers like eToro have a strong influence on the reputation and thus the price development of a crypto currency, since customers trust in their expert opinion.
The currency Bitcoin in particular is currently accepted by many companies as an online means of payment – one reason why many investors still invest in Bitcoin and rely above all on the market leader. However, this could change decisively if the banks intervene. Taylor also sees positive aspects in the foundation of own crypto currencies, because only the alternatives to the traditional banking system are a step into the future. Nevertheless, he stresses that the free market provides better means of payment than the government can.
Why he believes so strongly in the central bank crypto currencies, Taylor also explains quite simply: “Of course, the government authorities should also be subject to the pressure of competition and sooner or later have to reorient themselves. In addition, many governments will soon want to use the blockchain themselves. However, he does not see any particularly interesting innovations on the part of the state here. The free market thus wins in terms of development.
#DASH CEO Ryan Taylor: #CentralBank-Issued Cryptocurrencies Are the ‘Inevitable Future’
Taylor stated that central banks have certain advantages in issuing their own #cryptocurrencies#crypto #tech pic.twitter.com/7HZtzfd0Ay
– cryptoadvisor (@cryptotroymi) October 24, 2018
Regulation of the cryptographic market
Taylor also predicts that many countries will soon have stronger regulations for the cryptographic market. Smaller countries could soon start doing so, and he also expects some regulations for the USA from the beginning of 2019. Countries such as Iran had already spoken on the subject of a state crypto currency. This is already being planned in Iran, but is said to be linked to the Iranian currency, the rial. Not only are remittances abroad to be facilitated, but sanctions are also to be circumvented by the incumbent US President Donald Trump. In Venezuela Petro is the official crypto currency of the government. This was intended to solve problems with the fiat currency, but has not been very successful so far. The Petro is hardly used and therefore does not offer a stable price.
The EU Parliament recently published a study stating that crypto currencies from central banks are a good way to complement the lack of competition in the digital financial sector. Japan, on the other hand, is rather averse to the idea. A head of the Bank of Japan recently announced that the idea of a state crypto currency would only make sense if the country’s fiat currency were abolished. Otherwise, the bank does not see the issuing of a crypto currency as a successful undertaking.
The CEO of Dash is certain: Central banks will issue their own crypto currencies in the future and governments will regulate the market more strongly. It remains to be seen whether this only brings restrictions or advantages!