Will the Fedcoin come soon?

For a long time central banks were not tired, the Bitcoin and other digital payment technologies dead to speak. But now they will probably be overtaken by reality.Despite various setbacks, the Bitcoin is enjoying increasing popularity. Had late 2012 User just 22,000 digital wallets, so-called “wallets” that number is now estimated at around three million. Since this spring, even accepted the administration in the Swiss train as an international authority first digital currency Bitcoin.

Now the world’s leading central bankers worry about their own digital, covered by the State currencies. On June 1, 2016, therefore, an FinTech conference for central bankers around the world was held in the premises of the U.S. Federal Reserve Bank. Around 100 participants dealt with the issues there eventually Bitcoin and block chain. For illustration has Chain CEO Adam Ludwig made in this context a Bitcoin donation to demonstrate how the protocol works. It was the first time that a Bitcoin transaction was ordered from the premises of the Fed. What most probably may seem only a small step, showing in any case, that the leaders of the financial world of the increasing importance of digital currencies are aware.

Actually fascinated by the concept of the so-called crypto-currency long financial experts. But so far they a niche was only conceded. As such, the German Bundesbank held a conference on the subject in January 2015, banks sent over only their researchers. David Andolfatto, head of research of the Federal Reserve Bank of St. Louis declared at that time: “I believe that Bitcoin is a very good payment system”. Although the Bitcoin failing even in some functions of money, the concept of distributed database (block chain), but had a brilliant idea with enormous potential.

However, he had to concede that it only Gedankenspiele its research department to handle the Fedcoin and he does not speak for the Fed: “I have not spoken to anyone at my employer about it.” And even the Bundesbank, where the workshop was held, distanced himself in advance of the conference.

Already in the early 2015 conference in Frankfurt the Central Bank employees presented a Fedcoin concept. This is a light emitted by the US Fed, based on the US dollar, Bitcoin derivative. Andolfatto sees great potential because the central bank could guarantee as publisher a fixed exchange rate of cryptocurrency against the US dollar. As another advantage, he argued that the Fed could plan a current supply, whereas, for example, the Bitcoin was set at a maximum of 21 million units of money and therefore subject to deflationary pressures and strong price fluctuations. A separate digital, covered by the State currencies would have two main advantages: First, the payment processing would be cheaper and, secondly, the money supply would be more controllable. In addition, digital money offers the ability to track payments.

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