Canada Backs the Idea of Central Bank-issued Crypto Amid its Potential to Bring Economic Gains

2018-7-27 21:12

Banking institutions from around the globe and other financial agencies have been largely promoting the idea of Central Bank-backed Digital Currencies (CBDCs). Off lately we have been seeing a lot of countries and their central banks mulling out options to work on CBDCs which operate under the regulatory purview of the respective countries.

Recently, a central bank researcher for the Bank of Canada – S. Mohammad R. Davoodalhosseini says that a central bank-issued digital currency can prove to be economically fruitful to the country along with its neighbour, the United States, with whom Canada shares a very good equation on economic aspects.

The researcher in his latest report titled “Central Bank Digital Currency and Monetary Policy” notes that introducing a central bank digital currency (CBDC) “can lead to an increase of up to 0.64 percent in consumption for Canada and up to 1.6 percent for the US, compared with their respective economies if only cash is used.”

In his report, Davoodalhosseini mentions that one of the key challenges for central banks is whether their fiat cash currency and central bank-issued digital currencies (CBDCs) can co-exist together and if at all they can how should they work on an “optimal” policy.

To back his claims of the advantages of CBDCs, the researcher also presents his study with mathematical modeling and calculations wherein the researcher argues that a country’s economic welfare could be much better by substituting cahs with digital currencies, provided the cost of implementation and infrastructure doesn’t go to high. He wrote:

“Having both cash and CBDC available to agents (consumers) sometimes results in lower welfare than in cases where only cash or only CBDC is available. This fact suggests that removing cash from circulation may be a welfare-enhancing policy if the motivation to introduce CBDC is to improve monetary policy effectiveness.”

Davoodalhosseini’s study also notes that the existence of CBDC will help central bank attain a higher level of flexibility in adjusting the existing monetary policy. It says that “the central bank can monitor agents’ portfolios of CBDC and can cross-subsidize between different types of agents, but these actions are not possible if agents use cash.”

This report comes just within a few days of Europen Union presenting its study where it notes that arrival of central bank-issued digital currencies could help in reshaping the entire crypto thereby setting a new level of competition that could possibly mean the end of popular digital currencies like Bitcoin and Ethereum. It said:

“The arrival of permissioned cryptocurrencies promoted by banks, even by central banks, will reshape the current competition level in the cryptocurrency market, broadening the number of competitors. A potential inadequacy of traditional competition policy to address competition issues in the cryptocurrency markets can be found, suggesting direct public participation through a central-bank digital currency as a remedy.”

It remains to be seen that with the maturing crypto markets, how the central banks would restructure their policies in the coming years.

The post Canada Backs the Idea of Central Bank-issued Crypto Amid its Potential to Bring Economic Gains appeared first on CoinSpeaker.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Emerald Crypto (EMD) íà Currencies.ru

$ 0 (+0.00%)
Îáúåì 24H $0
Èçìåíåèÿ 24h: 0.00 %, 7d: 4.67 %
Cåãîäíÿ L: $0 - H: $0
Êàïèòàëèçàöèÿ $0 Rank 99999
Öåíà â ÷àñ íîâîñòè $ 0.00980991 (-100%)

economic crypto central canada gains potential bring

economic crypto → Ðåçóëüòàòîâ: 97


A study on issues of competition in fintech, commissioned by the European Parliament Committee on Economic and Monetary Affairs was published July 20. It found that central bank-issued digital currencies could be a “remedy” for a lack of

Europen Union Study shows central banks coming together with their own digital currencies, i.e., CBDCs could mean an end of the journey for the decentralized digital tokens. Bitcoin has been struggling for quite some time for its mainstream adoption, as crypto investors and enthusiasts are waiting for developers to bring a robust scalability solution. On

2018-7-23 18:43


Ôîòî:

A New EU Report Suggests Banks Could Indulge in Financial Misconduct to Stay Away From Cryptos

A new report from an EU department shows that all is not well in the fintech sector as competition intensifies between traditional finance and crypto finance. The report prepared by the Police Department for Economic, Scientific, and Quality of Life Policies on the recommendation of the European Parliament Committee on Economic and Monetary Affairs (ECON).

2018-7-23 17:19


Ôîòî:

Governance, Part 2: Plutocracy Is Still Bad

Coin holder voting, both for governance of technical features, and for more extensive use cases like deciding who runs validator nodes and who receives money from development bounty funds, is unfortunately continuing to be popular, and so it seems worthwhile for me to write another post explaining why I (and Vlad Zamfir and others) do not consider it wise for Ethereum (or really, any base-layer blockchain) to start adopting these kinds of mechanisms in a tightly coupled form in any significant way.

2018-7-21 23:03


Argentina Central Bank Looks For Crypto & Blockchain Education Via Books

Argentina’s Central Bank’s Interesting In “Mastering Bitcoin” Growing As Peso Is Depreciated By Rising Inflation Argentina is currently facing a big economic crisis as the country’s national fiat currency, the Peso, has hit a record low price against the USD and the inflation in the country is rising a lot recently. Not only people, but […]

2018-7-21 23:52


Change Wallet: Crypto Company Launches Bitcoin App With Zero Trading Fees

Change, a cryptocurrency company based in Estonia has announced the launch of its commission fees-free mobile application for buying and converting between different virtual assets. The app currently supports Bitcoin, Ether, Ripple, Litecoin and Tether, and is available for iOS and Android to residents of the European Economic Area under the name of “Change Wallet”. […]

2018-7-19 11:28


Nobel Laureate Economist Explains why Cryptocurrency will be Wiped out by Regulatory Policies In Future

While cryptocurrency is slowly becoming a pillar upon which global economic sectors are being mounted upon and the freedom that virtual currency presents to the masses is witnessing more adaptation from both elderlies and millennials, a very crucial question on the stability of the Crypto space is likely to stir up FUD in the minds […] The post Nobel Laureate Economist Explains why Cryptocurrency will be Wiped out by Regulatory Policies In Future appeared first on ZyCrypto.

2018-7-12 01:37


Iranian Government Gags Crypto Exchanges To Fight 127% Inflation And New US Sanctions

The government in Iran has gagged bitcoin exchanges across the country, claim bitcoin users and alternate coin community of the Islamic state. The government has been censoring its citizens from engaging in crypto-economy, to apparently counter the fresh round of economic sanctions that the US government is looking to impose later in August this year.

2018-7-5 21:31


Ôîòî:

EU’s Report on Cryptocurrencies: Officials “Shouldn’t Ignore” Them

By contrast, the European Union’s report plays devil’s advocate for both cryptocurrency’s strengths and its weaknesses and examines the asset class from a variety of angles. Subtitled “Potential economic advantages and disadvantages of VCs (risks and opportunities),” the report then launches into a subsection to weigh crypto’s pros and cons. This is especially useful in

2018-7-3 02:38


Ôîòî:

Philippines’ Financial Zone Making Crypto Controls, Authorizing 25 Exchanges

Regulation The authority of the Filipino government-owned economic zone is drafting regulations for cryptocurrencies and planning to limit the number of licenses it issues to 25. Japan Confirms Entrance Into the Crypto Space Drafting Crypto Regulations Philippines’ Cagayan Economic Zone Authority (CEZA) is “crafting rules to safeguard cryptocurrency investors,” according to the Philippine News Agency,

2018-7-1 22:11