Bank of England: Central banks looking at 'hybrid systems' using Bitcoin's blockchain technologyIt is worth being mindful of what traditional central banks are looking at. There is huge potential there, if it falls in the right direction. In reply to the uk.gov call for information end of last year, I noted BitShares but they will likely only adopt what is clearly understood and fair to all.
My reply suggested several classes to help their understanding..
> Class 3: Tokens with value pegged to match other assets Description: Digital tokens whose value is notionally pegged to real world assets, such as the GBP; USD; Gold; etc. Those pegs follows from a consensus of the value of each asset. BitShares: bitUSD is an example.
> # Recommend: No regulation or Government intervention is needed here.
then
> Class 3 above is especially interesting, as it suggests a stable market for bitUSD and others like bitGBP might arise, and yet still not require Government intervention. Those tokens would be pegged by consensus to the USD and GBP; Governments would continue to define the value of those fiat currencies and their digital equivalents would follow. What is interesting then is the potential for those tokens not just to be bought; sold; and shorted, as they are now, but later that they could become useful as currency - that is as communication of value. That suggests potential in Class 3 to prove more useful than Bitcoin even, because of that value relating directly to those real world currencies. That such digital token equivalents exist, would not necessarily affect their real counterpart in a bad way. Indeed having bitGBP, would enhance the status of the GBP directly. There is then opportunity here for the UK.gov to enable bitGBP to become de facto digital currency.
> Government might want to consider becoming a stakeholder in Class 3 and in Class 1, in order to provide confidence; impetus; and network stability. Encouraging the use of digital tokens with equivalent value to the GBP could prove be very useful to helping the UK businesses engage digital currencies.
BitShares needs to lose any politics about it's DPOS and make it's ambition clear and simple for outsiders to understand. Make it useful and make it uncontroversial and perhaps they would opt for that simplest solution having digital GBP as ==bitGBP? Is BitShares worthy of the BoE risking billions of GBP on?? Creating alsorts of additional features, might be less important than getting one killer capability exactly right.