Central banks want to issue their own Bitcoin

Regarding Bitcoin, major banks have said, "You really make me like it, but also make me worried."

In recent months, major banks have expressed their support for the development of the technology, but at the same time, they have also stated that issuing bitcoin is a legal option for the banking industry, but it is not yet allowed to be implemented. Despite this, their attention is inevitably focused on the growing popularity of bitcoin.

Unlike Bitcoin, the central bankers of various countries have to consider how to issue virtual currencies so that they can be easily regulated and accepted by the government. Of course, the advantage of virtual currencies is that they make fast payments possible and provide a more cost-effective system, thereby improving the central bank's control over currency transactions and currency circulation. However, security has become a headache.

As the Wall Street Journal article said, at present, no central bank has officially launched a system for the use and issuance of digital currency, but the banking industry continues to make suggestions and give opinions on this technology.

Caroline Wilklins, senior vice president of the Bank of Canada, said in a speech last month: "Let us put ourselves in the shoes of the vast majority of people in the world and think about what the scene would be like if they were using electronic money. We look forward to the arrival of this era, but we must also deal with and weigh the risks and benefits of this technology."

The challenge facing central banks is how to launch a system that is both safe and efficient and can be supported by the government. However, with the help of emerging financial technology companies, the traditional financial services industry may usher in a new transformation.

"How should we view this technology? Is it really necessary to issue digital currency?" eCM, a startup in Dublin, discussed this topic with several major central banks around the world. Johansen Dehamapol, founder and CEO of eCM, told the Wall Street Post that their company has had dialogues with several central banks in the world on this topic and reached a consensus with two of them that it is necessary to implement this technology and conceive a blueprint for digital currency.

eCM technology is designed to use the existing electronic transaction system to transfer money between customers, merchants, banks and even payment companies. In other words, this technology only converts money into electronic form and does not require a complete transformation of the existing transaction system.

The Bank of Canada and the Bank of Ecuador have both expressed interest in developing digital transaction technology, sparking heated discussions on the issue around the world. Even the Bank for International Settlements, which is composed of 60 central banks, has issued a statement saying that the concept of Bitcoin deserves further exploration to improve the control of banks.

The panelists said in the article: "There is a way to use the technology itself to issue digital currency." Although there is no tangible progress in this technology, this topic will continue to be a hot topic for global discussion.

For most of the use cases discussed for digital currencies, the focus has been on the fact that digital currencies would reduce costs and make payments more standardized, thus making financial services more efficient and convenient between institutions. For example, in the United States, digital currencies would make money faster and cheaper for consumers.

In the Wall Street Journal, Andrew Hudney, chief economist of the Bank of England, expressed his views on what digital currency will bring to the world economy. He said that there are many reasons to get rid of physical currency, including taking advantage of the synergy of financial instruments.

He once said in a past speech: "Perhaps the central bank's monetary policy has matured and it is time to move forward and develop great new technologies."