Deutsche Bundesbank President Jens Weidmann discusses central bank digital currencies and claimed that they have the potential to destabilize the financial systems around the world so we read more about in our latest cryptocurrency news today.
Weidmann noted during a speech in Frankfurt, Germany, that the widespread use of central bank digital currencies will have ‘’serious consequences.’’
CBDCs are described as a more efficient and new way to offer the central banks another form of money. The potential use of the distributed ledger could bring the CBDC to operate without intermediaries and more accessible around the world. The Central bank governor of Lithuania Vasiliauskas described:
“Some argue it could be run on a distributed ledger. In such a case, it would replace or complement reserves at the central bank with a restricted-access digital token. A token would be a bearer asset, meaning that during the transaction the sender would transfer value to the receiver, without intermediaries. This is something fundamentally different from the current system in which the central bank debits and credits the accounts without transferring actual values.”
The arguments by Vasiliauskas provided during a speech at the Washington Conference have little meaning to Weidmann. He warned against the CBDCs, saying that the demand for them will be much bigger or more volatile than for cash and this will have corresponding effects on the balance sheet of the central bank.
The Deutsche Bundesbank president stated:
“I see ourselves [the Bundesbank] as having the duty to offer citizens modern, fast, and also internet-enabled means of payment. The idea is to develop solutions that are up to date with the latest technology without incurring unnecessary risks to financial stability.”
Also, as noted in the altcoin news, Weidmann shared his opinions on blockchain technology calling it extremely expensive and slow. He also said that the trial project of the bank to integrate blockchain failed miserably. During that time he noted that the blockchain solutions do not fare better in any possible pay. Reportedly, the process took a bit longer and the results brought up relatively high computational costs.
Weidmann also ridiculed blockchain saying that the technology is not a breakthrough and that he remains skeptical of the technology.
Binance Removes US Resident Ban: Launching In “A Month Or Two”
“3. Prohibition of use By accessing and using the Services, you represent and warrant that you are not on any trade or economic sanctions lists, such as the UN Security Council Sanctions list, designated as a “Specially Designated National” by OFAC (Office of Foreign Assets Control of the U.S. Treasury Department) or placed on the U.S. Commerce Department’s “Denied Persons List”. Binance maintains the right to select its markets and jurisdictions to operate and may restrict or deny the Services in certain countries at its discretion.”When comparing the wording to the one uploaded in June, it is clear that Binance removes US resident ban. The previous text read that "Binance is unable to provide services to any U.S. person," - which is why the difference is obvious.
China’s Digital Fiat Currency Is Not A Real Cryptocurrency
“Since last year, the staff at the Digital Currency Research Lab have been working 996 to develop the system. We can say the CBDC is now ready to launch at one’s call," was his speech, later shared by many best cryptocurrency news sites.The CBDC with this aims to replace MO, meaning cash in circulation through a two-tier system. The central bank will issue the digital yuan only to commercial banks, who will further issue it to the public. Meanwhile the PBoC and its Digital Currency Research Lab are the ones standing behind China's digital fiat currency - along with more than 50 patent applications which are all either invented or co-invented by Yao Qian. One patent application reads:
“The emergence of digital currency is an inevitable trend. So far, privately issued digital currency bears the features of anonymity and volatility. Central banks must take their impacts on the payments, monetary systems and financial stability seriously. As such, it’s inevitable for central banks to push for digitized fiat currencies to optimize their circulation.”However, physical cash is still arguably the only form of fiat money inside China that can remain anonymous. We can see that China's digital fiat currency is not close to cryptocurrency - and the only third-party methods which are compared to bank wire can be offered by companies like Alibaba or WeChat - both requiring real-name verification authenticated by users' IDs as well as additional banking information.
“Existing M0 (banknotes and coins) are subject to counterfeit and money laundering risks. … The [CBDC] system should follow the existing rules about anti-money laundering and anti-terrorism financing imposed on cash, and should report to the PBoC on large amounts and suspicious transactions,” Mu emphasized in a speech.
Market With Mixed Signals As Ether And Bitcoin Record Minor Gains
XRP Will Defy The Altcoin Apocalypse: Ripple Chart Analysis
"Although many of the technicals like RSI, and position relative to moving averages looks like XRP is severely oversold and could bounce, traders should be cautious because the token has been falling out of favor with many crypto market participants, and there are many competing projects with similar characteristics and arguably a much better value proposition that have come to market."
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