Bank of England: Central banks looking at 'hybrid systems' using Bitcoin's block

[cylonmaker2053]

Wouldn't central banks most likely run their own chain, using fiat IOUs backed by the central bank?

yes, this is the furthest extent a central bank would ever likely support blockchain tech. they'd still want the ability to have discretionary power over the money supply and to extract seigniorage from the sheeple.

For a minute I thought you were talking about Ripple.

LOL 

[JoeyD]

Wouldn't central banks most likely run their own chain, using fiat IOUs backed by the central bank?

yes, this is the furthest extent a central bank would ever likely support blockchain tech. they'd still want the ability to have discretionary power over the money supply and to extract seigniorage from the sheeple.

For a minute I thought you were talking about Ripple.

[sudo]

introduce bitshares2.0 to them

[cylonmaker2053]

Wouldn't central banks most likely run their own chain, using fiat IOUs backed by the central bank?

yes, this is the furthest extent a central bank would ever likely support blockchain tech. they'd still want the ability to have discretionary power over the money supply and to extract seigniorage from the sheeple.

[starspirit]

Wouldn't central banks most likely run their own chain, using fiat IOUs backed by the central bank?

[cylonmaker2053]

we had a lunchtime talk by an ex-Fed researcher in our econ dept this last year. central banks are, indeed, investigating blockchain tech, but not likely to ever support a particular private entity; most likely, they'll at some point adopt elements of distributed ledgers to tinker on the fringe, maybe dev some apps internally and possibly some central banks will make a skeptical of going live to the public with their own blockchain. those are likely best case scenarios. worst case is that this research will go into more effectively attempting to disrupt private blockchains infringing on the banking/financial cartels of the world.

[Empirical1.2]

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.

I think the UK, with London being one of the financial capitals of the world will be one of the first to realise the strategic potential of crypto-currencies.

Once a national government supports and gives preference too but doesn't overtly control a specific crypto-currency, it could quickly dwarf Bitcoin and gain global or at least Eastern/Western dominance. The only question is who will be first?

Creating alsorts of additional features, might be less important than getting one killer capability exactly right.

My personal optimal creation would be a well distributed, BitAsset focused blockchain based largely on the BTSX currency model but including the new referral programme.

[davidpbrown]

Bank of England: Central banks looking at 'hybrid systems' using Bitcoin's blockchain technology

It 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.