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Crypto Banking

Crypto Banking

Crypto Currency or “cyber coins” are terms describing tokens of credit backed up by blockchain journals. A blockchain is a list of journal entries that contain a timestamp and a calculation based on the previous entry. The calculations are computationally intensive on purpose and provide a tamper-proof form of journal which is published and distributed.

Conventional coins and paper currency may not be worth much without the backing of a national central bank guaranteeing their value. If the nation is small and unstable, this translates into a unstable currency. In the world of cyber coin currencies, the trust is generated by the public distribution and the calculations involved.

Bitcoin and Litecoin are the most widely recognized cyber coins, but there are hundreds of others. The less recognized cyber coins do not currently enjoy much trust and this can impact their value. When a national central bank decides to issue cyber coins, this will all change.

‘Sovereign’ Blockchains Will Change Monetary Policy, Bank Paper Argues – [coindesk.com]

A new research paper published by South Africa’s FirstRand Bank explores the world of central banks and blockchains, suggesting that the technology could usher in a “new epoch” of monetary oversight.

Titled “The Advent of Crypto Banking”, the report examines the question of central bank-issued digital currencies, a topic that recently came to the fore when the European Central Bank announced this week that it was jointly exploring the concept in partnership with Japan’s central bank, the Bank of Japan. Those two institutions are expected to publish research of their own next year.

Other central banks, notably the UK’s Bank of England, have been actively exploring the technology for use as a basis for a new kind of digital currency. And, in June, Canada’s central bank unveiled a digital money prototype it has designed, dubbed “CAD-Coin”.

The FirstRand Bank paper is, in part, a deeper dive into what a central bank digital currency might look like, invoking the term “sovereign blockchain” as it weighs what officials could use the system for if it was fully realized.

Bitcoin Virtual Money

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