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noucktourno

Cryptocurrency is terrible but “crypto-assets" are for real - Mark Carney BoE

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I've searched through the forum and couldn't find anything about this.

I'm sure that Mark Carney is talking about Ripple when stated that: "crypto-assets could have valuable future applications—for instance, as part of more innovative, efficient, and reliable payment systems.”

https://www.technologyreview.com/the-download/610406/cryptocurrency-is-terrible-as-money-but-crypto-assets-are-for-real-says-bank-of/

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57 minutes ago, noucktourno said:

I've searched through the forum and couldn't find anything about this.

I'm sure that Mark Carney is talking about Ripple when stated that: "crypto-assets could have valuable future applications—for instance, as part of more innovative, efficient, and reliable payment systems.”

https://www.technologyreview.com/the-download/610406/cryptocurrency-is-terrible-as-money-but-crypto-assets-are-for-real-says-bank-of/

Unfortunately, if you click through and read Carney's speech, it's not as simple as the sound-byte makes it out to be. 

He doesn't distinguish between cryptocurrencies and cryptoassets as distinct entities but rather as the same entities given new intention eg. Bitcoin is terrible as a currency but could  be valuable as an asset. 

https://www.bankofengland.co.uk/-/media/boe/files/speech/2018/the-future-of-money-speech-by-mark-carney.pdf

He discusses how all the cryptos (mentioning the top ten which includes XRP) fail as currencies but can offer interesting use cases as assets. So he might view XRP as having compelling use as an asset but he certainly also considers that it fails as a currency. And that's ok.

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3 minutes ago, OzAlphaWolf said:

So he might view XRP as having compelling use as an asset but he certainly also considers that it fails as a currency. And that's ok.

As I know and I'm sure you already  know that XRP wasn't designed to act like a currency. So I'm ok if XRP will fail as a currency and it will act more like a digital asset and a medium of exchange between currencies.

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12 minutes ago, noucktourno said:

As I know and I'm sure you already  know that XRP wasn't designed to act like a currency. So I'm ok if XRP will fail as a currency and it will act more like a digital asset and a medium of exchange between currencies.

Agreed. I was just pointing out that Carney wasn't trying to distinguish between those coins wanting to be currencies and those coins wanting to be assets. 

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The time will come where currencies are no longer used, maybe when the next GFC happens people will realise that currencies as we know them today are the cause of all the economic turmoil and we actually need a new gold standard like XRP.

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4 minutes ago, Trickery said:

The time will come where currencies are no longer used, maybe when the next GFC happens people will realise that currencies as we know them today are the cause of all the economic turmoil and we actually need a new gold standard like XRP.

A world where a deflationary currency like BTC or XRP is used globally as a currency can only be described as "hellscape". Yes, we would be filthy rich, but it would be absolutely horrible for the economy and the 99.99% who don't have holdings in any crypto.

The ability of nations to control their monetary policy is a crucial foundation of modern economies. This is impossible if a native DLT asset is the currency.

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4 minutes ago, corak said:

The ability of nations to control their monetary policy is a crucial foundation of modern economies. This is impossible if a native DLT asset is the currency.

That is the whole problem with today's economy, the focus on win lose needs to change and become global.

Edited by Trickery

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When it has a value, and is digital and is fast... how will they for Gods sake prevent people from using it as a currency? crypto-asset, crypto-currency.... for my part technically the same, only the usage differs. And the usage will be decided by the USERS.... The ghost left the bottle and wether they like him or not, that ghost will do whatever that ghost will do.  Just like the telco's in the 90ties, against their will, had to deal with much cheaper communications over the internet (and now they like that ?)....

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45 minutes ago, corak said:

This is impossible if a native DLT asset is the currency.

If the DLT allows the creation of new tokens, then it's ok. The central bank can issue new 'currency' and still control the supply of  money. I would not be at all surprised to learn that the ongoing collaborations with central banks that ripple have are implementing this kind of thing. A change to the rippled software to allow a government backed GBP issued on the GBP ledger to have new GBP created by the BoE would not be a problem. Then you have all the central banks running their own ledgers with their own digital currencies, but they keep the same level of control as they currently have.

I would presume that in the implementation, only certain accounts would be capable of creating new currencies. Imagine the BoE being hacked and someone getting hold of the key that allows new fiat to be generated. Yikes. Multisigning capabilities would certainly be essential for that level of access.

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