FED: are virtual Currencies replace banks?

For quite some time now within the crypto world there is talk of virtual currencies government and business. Creations of governments like the chinese, and companies like Facebook, that seek to be an alternative to fiat money that is far away from the cryptocurrencies decentralized. But, at the end of the day, The virtual currency will replace commercial banks? This is a possibility, according to the Federal Reserve (FED).

The era of virtual currencies

At this point, we can say without fear to be mistaken that we are entering the era of virtual currencies. Therefore, since the birth of Bitcoin, the technology that drives the criptomoneda, has been shown to be useful for tens of uses of different. Including the creation of virtual currencies are centralized by governments and companies.

Thus were born two of the most disruptive of the financial history of modern art. We refer to the yuan virtual, the virtual currency developed by the chinese government. And to Pound, the currency virtual business supported by Facebook and another twenty large companies, world-class agglutinated in the Pound Association.

Both currencies have raised the possibility of a world in which virtual currencies and the technology Blockchain will play a key role. But not in the way in which the cryptocurrencies what they had planned until now. But the form of centralized around an entity or organization.

Therefore, if the aspiration of the cryptocurrencies is to replace the global financial system based on fiat money traditional. Virtual currencies such as the Pound and the yuan virtual, could be the real makers of the replacement (or update) of the fiat money, through the centralization.

The risks for banks

However, an effect that few have in consideration when you talk about these new virtual coins. It is the role that they would play the central banks once they are launched, and its use begins in earnest among the population. Therefore, the same would enable the citizens to maintain accounts in your virtual currency local directly with the central bank. Without the need of financial intermediation offered by commercial banks today.

For this reason, the Federal Reserve (FED) of the united States, in collaboration with the Universities of Chicago and Pennsylvania, has conducted a study on the impact that would have these virtual coins on the commercial banks. Determining that competition among banks could remain, including the country’s central bank. As long as the same does not have special advantages over commercial banks.

This is the report of the FED on which raises the possibility that virtual currencies replace banks.

Of course, rely on central banks as the FED does not take advantage of his new vantage point, in a world dominated by virtual currencies, it looks complicated. Therefore, those who propose the cryptocurrencies as an alternative to the state monopoly, continue to drive currencies such as Bitcoin. Creating a real race between the different types of virtual coins. Making of this report our Data of the Day today here in CriptoTendencia.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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