Golden Observation丨Bank for International Settlements: Public interest in central bank digital currency has surpassed Bitcoin

Golden Financial Blockchain News, August 24   Analysts at the Bank for International Settlements said that with the outbreak of the new crown virus in 2020, it may push global central banks to issue central bank digital currencies, and this momentum has begun to "take off". "Are.

On August 24, the Bank for International Settlements released its latest work report, which analyzed the research and development, technical methods, and policy positions of global central bank digital currencies. The comprehensive research report draws on more than 16,000 conversations between the BIS and central banks, and also assesses existing designs for central bank digital currencies and countries' incentives to accept entirely new monetary models.

Golden Noon News | List of important developments at noon on October 14: 7:00-12:00 Keywords: Spain, Synthetix, Grayscale, Uniswap

1. The Spanish government wants to let crypto investors disclose their holdings and earnings;

2. Synthetix launched the second phase of the Optimistic test for the second-layer scaling solution of Ethereum;

3. Grayscale’s net assets under management reached US$6.3 billion;

4. The community criticized Dharma's first Uniswap governance proposal or brought too much power to it;

5. The founder of YFI said that he will launch an ETH competition project;

6. The trading volume of Uniswap V1 has increased by 354% in the past 24 hours;

7. Ni Guangnan, Academician of the Chinese Academy of Engineering: Without network security, there will be no new infrastructure security;

8. Report: The market value of Tether may surpass that of Ethereum next year;

9. BTC is currently reported at $11,389, and the current total market value of cryptocurrencies is $360.5 billion. [2020/10/14]

The authors of this paper write:

Analysis| Golden disk: The list of rises and falls shows that the market is insufficient: Comprehensive analysis of the golden disk: According to the data in the figure, among the top 100 currencies with the highest market value today, only 5 of the 12 coins with the highest market value In the top 50, and most of them are in the lower half, only 5 of the decliners are from the top 50 in market value, which shows that the targets with large market value are relatively stable today, and the funds are mainly concentrated in the operation of small market value currencies, which also reflects from the side. Insufficient funds in the market. [2018/8/20]

“In the past year, there has been a noticeable shift in attitudes towards whether central banks should issue digital currencies.”

Research by the Bank for International Settlements found that central bank digital currencies can bring greater benefits to the public over time. Data shows that in 2020, the search-ethexc volume for the keyword "central bank digital currency" has surpassed the search-ethexc volume for "Bitcoin" and Facebook's digital currency "Libra" worldwide.

Jinse Finance live report Wang Peng, founder and CEO of Deep Chain Finance: Only hard work and stupid work can make a good block chain media: Jinse Finance live report, at the 2018 Global Blockchain Elite Summit, carried out "From the perspective of the media" In the roundtable discussion titled "Development Trends of the Blockchain Industry", Wang Peng, the founder and CEO of Deep Chain Finance, pointed out that in the early stage of the blockchain industry, the quality of practitioners was different, and many people tried to participate after waiting and watching , They think that combining the original project with blockchain technology can make benefits, and we have also seen the myth of getting rich overnight. In the blockchain industry, we have to pay attention to various industries every day. In essence, the blockchain media is playing the role of a communicator. To be a good media, we must work hard and stupidly. This industry can trade without sleep. I hope the industry can exercise a little restraint and let the media also take a break. [2018/4/28]

With the effective support of the data, the Bank for International Settlements pointed out in the report that although central bank digital currency is not a new concept and has been proposed as early as more than ten years ago, it has not received widespread attention worldwide until 2020. In addition, the BIS proposes several possible hypotheses:

Jinse Finance’s exclusive analysis Russia’s banning incident reveals that the peaceful coexistence of supervision and decentralization still needs to be explored: the Russian government has adopted stricter banning measures on Telegram. According to local Russian media reports, the Russian telecommunications regulator has blocked more than 2 million IP addresses under Google and Amazon cloud services. Russia's FSB has repeatedly asked Telegram to hand over private keys that would allow them to view encrypted chat logs stored between users. But because Telegram repeatedly rejected the request, Russia's national telecommunications regulator eventually issued a notice banning access to Telegram within Russia. According to the exclusive analysis of Jinse Finance, it is actually difficult for us to say that Telegram’s behavior of strictly guarding data is guilty, and its actions are also out of its own duties and obligations. But is the government’s supervision wrong? No, it’s because government supervision and the “decentralization” of blockchain technology have not yet found a middle point to achieve a balance between the two. In other words, the peaceful coexistence of the two is still in the exploration stage. [2018/4/18]

First of all, the Bank for International Settlements pointed out that after Facebook launched the digital currency Libra, it was "encircled and suppressed" by regulators. This is undoubtedly a turning point in the global digital currency market.

The original idea for Libra was to be a so-called "stablecoin" that would be backed by a basket of global currencies. Compared with Bitcoin's volatility, this currency issuance model will keep Libra's value stable. However, the idea was opposed by regulators, after which Facebook had to "scale down" Libra's ambitions. However, in April of this year, Libra Association board director David Marcus (David Marcus) stated that Libra does not have to be linked to a basket of currencies as originally set, but can also be linked to a single national legal currency such as the US dollar.

But now, Facebook's digital currency Libra has made many noteworthy changes. In addition to enhancing compliance procedures and addressing concerns that the network could be used to launder money or raise funds for illicit activities, Libra also transitioned from its original plan to be a "global currency" to one that is 1:1 with a single sovereign currency. Anchored stablecoins, and for different sovereign currencies, Libra will provide sufficient reserves. Finally, it is worth mentioning that Libra has given up the idea of creating a permissionless blockchain environment similar to Bitcoin or Ethereum, and has now turned to building a permissioned blockchain.

Secondly, the Bank for International Settlements believes that the new crown virus epidemic is a catalyst for the central banks of various countries to study the issuance of digital currencies. It is further stimulating the government to try to carry out the digital transformation work of retail payment.

The data doesn’t lie, and the reality is: by the end of 2019, central banks representing one-fifth of the world’s population indicated that they were likely to issue central bank digital currencies in the near future. In addition, the number of central banks claiming to issue retail central bank digital currencies within 1-6 years has also doubled.

It is worth mentioning that Raghuram Rajan (Raghuram Rajan), governor of the Reserve Bank of India (RBI), the central bank of India, also recently stated that central banks around the world have begun to issue their own digital currencies, which may pose a threat to central banks. , and the role played by retail lending service providers globally, and may change the entire financial system landscape. Of course, whether this idea can actually become a reality is still under discussion.

Finally, the Bank of International Settlements also specifically mentioned the United States. They stated that the digital dollar was specifically mentioned in the early version of the fiscal stimulus plan of the United States Congress, and claimed that the digital dollar has the potential to accelerate government payments to citizens. Moreover, in countries such as the Netherlands, China, and Sweden, the local central banks are accelerating digital currency research and development during the new crown virus epidemic, and they have also increased the priority of this work.

Therefore, the BIS believes that all of the above factors are sufficient to overcome the "enormous inertia" in traditional retail payment behavior, and that it is likely to have lasting effects. The BIS paper concludes:

“When people’s payment behavior changes, they are prone to perpetuate the downturn. In the same way, changes in payment methods triggered by the COVID-19 crisis, such as greater use of digital payments, are likely to have far-reaching consequences in the future. Influence."

Part of this article is compiled from cointelegraph

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