Bitcoin & Cryptocurrencies - Looking Beyond The Hype (BIS video)

Cryptocurrencies: looking beyond the hype

The Bank for International Settlements (BIS) (domain: BIS.org) video above published Jun 17, 2018: Hyun Song Shin speaks about Chapter V of the Annual Economic Report 2018 (full embed below). Cryptocurrencies' decentralized model of generating trust limits their potential to replace conventional money, the chapter argues.

Abstract: "Cryptocurrencies promise to replace trusted institutions with distributed ledger technology. Yet, looking beyond the hype, it is hard to identify a specific economic problem which they currently solve. Transactions are slow and costly, prone to congestion, and cannot scale with demand. The decentralized consensus behind the technology is also fragile and consumes vast amounts of energy. Still, distributed ledger technology could have promise in other applications. Policy responses need to prevent abuses while allowing further experimentation."

Cryptocurrencies: looking beyond the hype: BIS Annual Economic Report  |  17 June 2018, PDF full text (452kb)  |  24 pages embed below:

Despite the hype, #cryptocurrencies like #bitcoin are not the answer to the increasing need for #DigitalPayments because of their volatile value ...1/4 https://t.co/Z9f5mBLrhK pic.twitter.com/JfMB8faFev

— Bank for Intl Settl. (@BIS_org) June 17, 2018

… cryptocurrencies lack scalability to handle the economy’s transaction needs …. 2/4 https://t.co/Z9f5mBLrhK pic.twitter.com/9JwSBIVhfH

— Bank for Intl Settl. (@BIS_org) June 17, 2018

… payments made with #cryptocurrencies are never fully final because of possible rewriting of history through episodes of #forking … 3/4 https://t.co/Z9f5mBLrhK pic.twitter.com/sntmMlwlLq

— Bank for Intl Settl. (@BIS_org) June 17, 2018

… but the underlying distributed ledger technology just might be applied in finance, for instance in trade finance #DLT #Blockchain #TradeFinance 4/4 https://t.co/Z9f5mBLrhK pic.twitter.com/fi9RrhRn1j

— Bank for Intl Settl. (@BIS_org) June 17, 2018

The Bank for International Settlements, founded May 17, 1930, is an international financial institution owned by 60 of the world's central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks." The BIS provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland, with representative offices in Hong Kong and Mexico City.

See also: The bigger Cryptocurrencies get, the worse they perform: BIS | Reuters.com.

feedback & comments via twitter @DomainMondo
Follow @DomainMondo

DISCLAIMER

The Global Shift To Cashless Payment Transactions

Courtesy of: VisualCapitalist.com

The U.S. Federal Reserve estimates that there will be $616.9 billion in cashless transactions in 2016, up from around $60 billion in 2010.

Despite the magnitude of this shift, what is happening from country to country varies quite considerably.

In Sweden, about 59% of all consumer transactions are cashless, and hard currency makes up just 2% of the economy.

In Germany, only 33% of consumer transactions are cashless, and there are only 0.06 credit cards in existence per person.

Governments have been increasingly pushing for a cashless society. Such a move, some say, would decrease crime, money laundering, and tax evasion.

All money would presumably be stored under the same banking system umbrella, and even the most prudent savers could be taxed with negative rates to encourage consumer spending.

Prerequisites for going cashless:

• Access to financial services
• Micro-economic and cultural factors
• Merchant scale and competition
• Technology and infrastructure

See also:

• Measuring progress toward a cashless society (Master Card)(pdf)
• Cashless payments overtake the use of notes and coins | BBCnews.com

Tweets about cashless transactions


feedback & comments via twitter @DomainMondo
Follow @DomainMondo

DISCLAIMER