A Bitcoin-Style Currency for Central Banks


The Bank of England is interested in blockchain.   

This article makes a lot of claims I take issue with:

The author writes: "The digital currency Bitcoin was designed to be independent of any government—a feature that also limits its mainstream appeal."  Bitcoin's appeal is limited by many things: chief among them is that traditional money and payment systems, the US Dollar, Visa and Mastercard work so well...or at least appear to work so well...for many people. When Bitcoin works better for the types of transactions we make every day, then people will use it even if it is independent of any government. 

Professor of finance at UCLA Bhagwan Chowdhry is quoted as saying that by adopting a system like RSCoin, central banks could enable the financial system to serve people much better. “The benefits of digital currency are immense,” he says.

We already have digital currency: it's called the US Dollar. It exists mostly as digital numbers in electronic databases at banks and the Fed. Implying that blockchain somehow makes a currency that is somehow "more digital" than already digital fiat currencies misrepresents the purpose and value of blockchains. 


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