In a blog post, the Central Bank of St. Louis crypto-evaluated currencies such as the Bitcoin compared to cash, is very positive. A change in the Wind at the US-American Central banks?
Bitcoin and the US Dollar have no intrinsic value
In an article from 25. April lit the Federal Reserve Bank of St. Louis the Use of cash compared with crypto-currencies. The most frequently mentioned Argument of critics is that the Coins have no intrinsic value. However, the US Dollar or the Euro is no different. The digital currencies were only of zeros and ones, and wear a “Material value” – such as diamonds, Gold or silver. Since the gold standard was suspended in 1971 “temporary”, the same applies for the paper money of national Central banks. No matter whether you look at the Bitcoin as a capital, currency or Investment, the fact is that he “has a value” as today’s Fiat currencies.
This quote from a Federal Reserve bank is priceless!
“Digital currencies exist as data. The cash in your wallet exists as a blend of 75 percent cotton and 25 percent linen. Neither is inherently valuable.“
— Michael del Castillo (@DelRayMan) 28. April 2018
Limited money supply, and exchange opportunities
The St Louis FED indicates that the us calculated the Central Bank the money supply carefully and limited. With Bitcoin the money supply is limited also. A limited amount of money prevents the debasement of the monetary system.
Also, in exchange for cash and Bitcoin the same work. As a bill goes directly from Person to Person, to be crypto-currencies also transferred from Wallet to Wallet. A Review of the Accounts – as is the case with the burden of a credit card – is neither the US Dollar nor Bitcoin are required. Therefore, the payment by bill is anonymous and linked by Bitcoin, at least not with a name, but only with the corresponding Bitcoin addresses.
Central Bank sees digital currencies as a red cloth
At the end of the Blog article, the Federal Reserve Bank of St. Louis highlights, however, that there are also differences between crypto-currencies and money seem to be. Nevertheless, the article is neutral, and the digital rating of currencies is quite positive. Alone the possibility of a pseudonym to transfer the Coins from Wallet to Wallet, be for each Central Bank, such as a red cloth, it says elsewhere. This would clearly be contrary to the principle of the banks, to know always the verified identity of each customer. The Know-Your-Customer principle (KYC) is designed to prevent any money laundering and tax evasion.