For most of its short life Bitcoin has been a plaything for computer geeks and largely ignored by banks and governments. That all changed in late 2017 when an epic rally sent prices soaring to new peaks. Since then central banks have been paying closer attention to cryptocurrency, especially in recent months as Facebook threatens to usurp their dominance.
Bankers Need Their Own Cryptocurrency
The benefits of a digital currency are clear, faster and more efficient payments are good news for all. Banks already make huge profits moving people’s money around for them and digital cash will aid them even further.
Facebook has rattled the regulatory cages of the world and given bankers a wake-up call. If they cannot improve their archaic and costly transfer mechanisms, which are mostly based on SWIFT, better alternatives will emerge.
There is a definite demand for a Libra like cryptocurrency but Facebook is clearly not suitable to be in charge of it. Bitcoin does exactly what is required but is price volatility is still preventing everyday use and is off-putting for most.
Central banks in China, Sweden, the Bahamas and Thailand are experimenting with their own cryptocurrencies and many will be launching soon. The FED is still waiting on the sidelines according to Bloomberg and is likely to be left behind by rafts of innovation hampering regulations.
The threat to national sovereignty by the social media giant was large enough to bring down an avalanche of criticism for its Libra…