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RE: China Central Bank Advisor: "Bitcoin As A Currency Could Collapse Entire Economies"

in #bitcoin7 years ago

Advisor Sheng is right that the adopting Bitcoin as a national currency might not be a good idea. Actually I think it might not be a good idea for any central bank at this moment to adopt Bitcoin as a national currency for the following reasons:

  • A decentralised national cryptocurrency might not be a good idea at all since a government will have limited tools to control the currency value, interrest rate, economy, etc. In fact it is not even a national currency but an international cryptocurrency. A centralised cryptocurrency might be a better idea, which China is also researchinig now.

  • The general public do not know how to use Bitcoins at all and it might take a while before Bitcoins or other cryptos are generally accepted

  • The large swings in value at this moment will probably create too much unrest in a national economy.

Personally I think the growth of the crypto currencies will affect many national currencies anyway. By the time the cryptomarket will become 5 to 10 % of the total money market some currencies might feel some devaluation. In unstable countries it might even take over the entire money market together with the anchor currency at that time: Renminbi, USD or even Bitcoin, who knows :)

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