Monday, June 6, 2016

Q&A - 6/6

Author

If we ever base money on something, it should be gold (again), not a cybercurrency, because a bits can be stolen electronically / easily but gold cannot.

Wrong

Maybe thieves cannot hack into a vault, but they can still break your f**king door and take your gold. Plus the damn thing is impossible to transport easily once it is in physical form.

News

The head of a startup bringing blockchain to finance had a prestigious audience last week: central bankers from 90 countries including Federal Reserve Chair Yellen, as well as officials from the International Monetary Fund, World Bank and Bank for International Settlements. His message: get on board with digital ledgers, which proponents say could dramatically improve how money flows around the globe.[..]

Banks have a new reason to pay attention to emerging technologies following a series of thefts. In February, thieves made off with $81 million from the central bank of Bangladesh. A commercial bank in Ecuador said it was held up for $12 million last year, while a bank in Vietnam said criminals tried, and failed, to steal $1.1 million in what experts say may have been a practice run for Bangladesh. All of the attacks were committed by cybercriminals, and at least some made use of a messaging system run by the Society for Worldwide Interbank Financial Telecommunication, better known as Swift.  Blockchain could help prevent such hacks. Unlike Swift, a banking system run on a blockchain would be distributed with no one point of failure because the system runs simultaneously on all the computers linked to it around the world.

Ludwin told bankers that the question they face is not how digital currencies can help the current financial system, it’s what role central banks decide to play. They can operate the digital networks themselves, issue digital assets, hold those assets, create products and services to run on those networks or just observe them, he said.[..] If banks and their customers conducted those transactions on a blockchain, it would give central bankers new insight and transparency. That’s because all transactions on a blockchain are recorded, can’t be changed and can be viewed by anyone on the network at any time, including regulators[..]

Great Idea

Comment

Bitcoin is bad [..] it is used by drug smugglers, shady characters 

Errr

So is paper money... What's your point? 

This is an example of criticism-by-association, a form of mental laziness. Sky is blue, so is the blue man group, and a bad person once went to their show, so blue sky is not good. Seriously.

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