US $ Crypto Currency by Federal Reserve
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US $ Crypto Currency by Federal Reserve
1–10 of 27 posts
Re: US $ Crypto Currency by Federal Reserve
#2If it's centrally controlled that defeats the purpose of it being a crypto currency.
Re: US $ Crypto Currency by Federal Reserve
#3If it's centrally controlled that defeats the purpose of it being a crypto currency.
the basic idea, is not around cryptography, the idea is to have, a truly digital currency, regardless of how it is 'created'. I just want to eliminate Card companies, and they were not made for Internet either. they are cool for offline shopping as you don't have to carry cash.
Re: US $ Crypto Currency by Federal Reserve
#4There's a couple problems with that idea.
1) It requires the US government to run the payment network. That's an expensive and security sensitive installation. The government, by far and large, isn't terribly good at running IT installations (see, the recent healthcare.gov)
2) The governments like to exercise capital controls. They do that way of the banking system. If it introduced digital $, they can't control it. Because anybody with a wallet could receive and spend them, assuming that everybody can create a wallet.
3) If not everybody can create wallet, i.e. the wallet needs to be governmental registration, it puts further demands on the features of the IT installation of the government. This isn't making it it any more likely to happen.
4) The credit card and banking industry would feel themselves threatened. Because, a lot of what they do would be taken over by the government, there'd be no end of political flamewars and stalemates trying to get this trough.
5) You're assuming that the government running the payment network would somehow, magically, be better than credit card companies. I very much doubt that, transaction fees would probably be even higher, and reliability would probably be pretty miserable.
Re: US $ Crypto Currency by Federal Reserve
#5There's a couple problems with that idea. 1) It requires the US government to run the payment network. That's an expensive and security sensitive installation. The government, by far and large, isn't terribly good at running IT installations (see, the recent healthcare.gov) 2) The governments like to exercise capital controls. They do that way of the banking system. If it introduced digital $, they can't control it.…
wider problems include:
- Recent revelations about NSA activities, make out any cryptocurrency designed by USA, to be unsafe. It is the biggest single damage done to trust factor of US tech industries.
- Sooner or later, diplomatic pressure would be made upon smaller countries to have their forex reserves in crypto currency, and sooner that pressure will spread to bigger countries. Some will oblige, some will build walls(leading to economic sanction---> war possibilities{one word: CHINA)
- Then on, hit a button, all forex reserve belongs to USA.. or worst case scenario, to someone who gets access to weakness in the cryptocurrency. Resulting in world economic chaos.
Re: US $ Crypto Currency by Federal Reserve
#6After the government trying to subvert crypto standards, what could possibly go wrong with this idea, that would force half the world to use this instead of the US dollar?
Nobody would trust this. Bitcoin works because people trust it, because it's built on open source and P2P principles, so they trust it because it's "trustless". That's where most of its value comes from. People also trust the US dollar because it's been around for so long, and nobody even thinks about it anymore.
So yes, the Fed Reserve could come out tomorrow and say that 1 FedCoin = $1, and dollars are gone from existence (unless you're suggesting FedCoin should compete with the dollar? But then what's the point?), all of them being replaced by trillions of FedCoins. And the next day FedCoin would drop in value by half, taking the US economy with it.
Re: US $ Crypto Currency by Federal Reserve
#7Any currency controlled by any one individual is either (1) used by only one individual, or (2) not a crypto currency.
As for making the USD easier to use on the web, I think we call this system PayPal. Except it should be less evil.
Re: US $ Crypto Currency by Federal Reserve
#8There's a couple problems with that idea. 1) It requires the US government to run the payment network. That's an expensive and security sensitive installation. The government, by far and large, isn't terribly good at running IT installations (see, the recent healthcare.gov) 2) The governments like to exercise capital controls. They do that way of the banking system. If it introduced digital $, they can't control it.…
wider problems include: - Recent revelations about NSA activities, make out any cryptocurrency designed by USA, to be unsafe. It is the biggest single damage done to trust factor of US tech industries. - Sooner or later, diplomatic pressure would be made upon smaller countries to have their forex reserves in crypto currency, and sooner that pressure will spread to bigger countries. Some will oblige, some will build w…
>or worst case scenario, to someone who gets access to weakness in the cryptocurrency. Resulting in world economic chaos.
we are talking here about the same measures and standards, taken to make sure there are no counterfeit paper currency in the market.
Re: US $ Crypto Currency by Federal Reserve
#9Is someone confused here? Isn't the dollar already the digital currency of the Federal Reserve and the international banking system?
The dollar is a digital currency pretending to be a physical currency for the naive.
Re: US $ Crypto Currency by Federal Reserve
#10The very notion of a secure crypto-currency controlled by the Fed is an oxymoron.