St. The researcher at the Federal Reserve Bank of St. Louis, Aleksander Berentsen and his colleague Fabian Schar, issued a statement acknowledging that central banks are easy to form their own crypto currencies.
"However, the key features of crypto currencies can pose a threat to central banks," the researchers said. In the article titled an Central Bank Electronic Money Case and the Crypto Currency Case of the Central Bank u, it was stated that publicly recognizing the identity of the persons involved in the financial transactions is compulsory due to the application of laws.
Financial Crimes Prevention
In order to prevent financial crimes such as drug smuggling, terrorism and money laundering, the police authorities should be able to easily identify the sender and recipient of monetary transactions. If a bank would indeed create a block chain-based crypto currency without permission, it would not be easy to identify the identities of those involved in the proceedings. This; Researchers say that central banks controlled by central governments will not make sense to develop their own counterfeit crypto currencies.
Most likely, a digital currency given by the central bank, decentralized or peer-to-peer (P2Pnot a money transfer system, but a centrally managed electronic money format. Therefore, researchers,the FEDCO”Or any other central bank to create a crypto currency is a bit of a movement.
According to the research report; The central way of providing virtual money was long before the invention of the block chain. In May 2018, Lael Brainard, governor of a Federal Reserve Board; The central bank said the digital currencies (CBDCs) would not be useful because their virtual currency is highly unstable. Brainard therefore stated that they cannot work effectively as an active exchange environment (MoE) or a value store (SoV).
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Brainard's comments came during the Digital Currency Compilation Reading Conference in San Francisco. Brainard is critical for CBDCs; block chain technology, the ability to improve the efficiency and transparency of various business processes.
Although the US Federal Reserve does not plan to develop its own encrypted currency, it is possible for other nations to initiate their own digital currency. As CryptoGlobe reported in November; The head of the International Monetary Fund (IMF), Christine Lagarde, said all financial institutions should seriously consider exploring the feasibility of their virtual currencies.
Lagarde, an experienced French politician and lawyer,
block chain technology is ”safe, cheap and potentially semi-nameless blok. According to him, central banks can benefit from the crypto currencies, he said. He added that he believes cryptaes will help in providing money to the digital economy. He added that digital money can support economic and financial participation, since a large percentage of the world's population still cannot access modern banking services.
Source: Cryptoglob to