Rebuilding Cryptocurrency Beyond Poor Projects and SkepticsOctober 2, 2018
Meltem Demirors, stated, “We now have to work together to define the future of who has the right to print money and who has the right to define for us individually and collectively about what has value,”
Jim Cunha, Vice President of Federal Reserve and Treasury services, was involved in a 20-minute conversation with cryptocurrency leaders. The event discussed the kind of influence that blockchain technology had with regards to the way people think about money, and about how to make money
During the discussion, Cunha reflected on the early stages of blockchain experiments. The team he was talking about consisted of 200 members. They had taken Ethereum and Hyperledger Fabric to explore the blockchain technology. The discussion also revolved around how the Central Banks in the US interacted with the different startups and currency issuers. They also discussed how the blockchain works.
When it comes to embracing the blockchain technology and the cryptocurrency, the obstacle faced by the Central Banks according to Cunha is related to the lack of certainty around the security of the organizations that build the blockchain. The borderlessness, speed or the technology was not a matter of concern at all.
Cunha stated, “We use private companies all the time, I don’t know if we’ll ever do that with cryptocurrency.”
The problem he states was that several companies who adopted cryptocurrency chose to work under a false name, slightly pseudonymous. They scammed investors, and they consider it to be one of the successful methods of using the blockchain technology to make some quick money.
However, Cunha is venturing into understanding the blockchain technology from the inside. Mentions were made to several projects like Ubin that included the Monetary Authority of Singapore and the Utility Settlement Coin from Clearmatics Technology. These were just a few from the many examples of where Central Banks are coming under the influence of the cryptocurrency world.
The cautions given by Cunha were related to how cryptocurrency companies might choose to partner up directly with Central Banks. He was more interested in state-controlled fiat currency, which he feels will be a reality one day. The different efforts that are made by the central banks like those that are being done in Sweden he says are proof enough for a future probability of state-controlled fiat currency.
While at first, it might seem like the controls on the price that are regulated by Central banks are not necessary, it is an essential fix that should be made if the cryptocurrency should work well for several investors as is. The integration of cryptocurrency and the fiat currency will lay the groundwork for new types of markets.
Several others who participated in the discussion panel were expressing their concern and support over the importance of having to fix up the broken reputation of cryptocurrency. Poorly vetted projects were related to skepticism.
The general thing that was seen among all the speakers in common was about a vision and imagination that concentrated on how monetary systems will work like from the ground up with cryptocurrency being added on to the fiat currency.