THE PHENOMENON OF VIRTUAL CURRENCY
Rapid growth in the popularity and value of virtual currency, seems to be too big to be ignored by the central bank in various parts of the world. No wonder a number of central banks started to turn to potential adjustments to the system of virtual currency.
now the attention of the world is also gushing on the plan of a new cryptocurrency i.e. Exio Coin that will start a round of Prime fundraising on 7 September 2017.
Because, the founder of Exio Coin claims that the vitual currency will be backed by a sovereign State. However, they deliberately hide the proponent country name until October.
In this case the founders could not explain in detail why they hide the identity of the countries supporting it. One of the founders of Exio Coin, Sunny Johnson, even only give limited information about the country.
"Her supporters is one of the countries that are the wealthiest per capita, in the world," he said.
Claim approval of a country over Exio Coin seems to be evidence of how the reputation of the crytocurrency and the explosion of digital technology have been too naive to be dwarfed by the central bank.
Moreover, the birth of the virtual currency is one of the efforts against the process of centralization of the financial system that had done the central bank with its conventional currencies.
Although to date, a number of central bank officials are still fond of ' laugh at ' the high volatility and the risk that will be experienced by the users of the cryptocurrency, a number of observers regard the central bank officials at the same time also Central ketar-ketir the reputation of the institution will be eroded by the increasing use of virtual currency.
In addition, officials of the central bank is also shrouded in fear that they have been late in the face of risks while opportunities virtual currency. What's the current rotation of the cryptocurrency in the world has reached US $5triliun.
"The Central Bank can no longer treat virtual currency such as toys which are placed in a box, which can be controlled as they are. They should realize, virtual currency was ready to break down kemapanan in the financial industry, "said Andrew Sheng of the Banking Regulatory Commission Chief Adviser on China.
Statement of the Sheng has been representing at least how the Central Bank of China (PBOC) that eventually began to recognize the power of virtual currency. Since doing research deep in 2014, the PBOC announced this year it will publish similar Bitcoin virtual currency in the near future.
The virtual currency will be distributed by hand in yuan. PBOC believes, step it makes China able to adjust to the rapid development of the financial industry, and his cryptocurrency will reduce the high costs that occur when conventional money circulate.
In addition PBOC also claims the exchange rate instrument diigital it will increase convenience and transparency of transactions, reduce tax evasion, money laundering, and other criminal acts.
A saying that goes, if you can't beat pesaingmu, then join them, a number of major economic country central banks in addition to the PBOC eventually began to develop research and adoption of plans revealed virtual currency on their system.
Japan's Central Bank (of the BOJ) and Eu Central Bank (ECB) has launched a research project together. The research studied the possibility of using the distributed or large book called blockchain in the Bitcoin in their system.
As is known, the blockchain allows one to send you a virtual currency to another without intermediaries as do conventional bank. Blockchain is also able to verify each transaction and can track at once recording every transaction process
Meanwhile, the Netherlands Central Bank (DNB) has even created his own cryptocurrency, which tested internally, to understand how it works. As for the Government of Russia has shown its interest in the Ethereum, which is the most popular virtual currency second Bitcoin. The Central Bank of Russia even middle menerapakan blockchain system pilot project.
The US Central Bank (The Fed) in the last year continue to make cryptocurrency as one of the topics of discussion. The former Governor of The Fed, Ben Bernanke, even repeatedly said virtual currency will show long-term potential.
Bernanke himself is scheduled to be the keynote speaker in Conference virtual currency and central bank in October in the US. The Conference was organised by the Ripple, which is one of the fourth largest virtual currency in the world.
INCREASED ALERTNESS
Although it began to turn to the potential of the criptocurrency, some of the central bank also continues to cast doubt on the strength and stability of the currency. One of the members of the Board of Governors of The Fed Jerome Powell even warned that cryptocurrency has a great vulnerability of siber. The very nature of protecting the identity of its users are also feared to be misused for illegal transactions.
Powell exemplifies the hacking event and theft committed to exchanging Bitcoin i.e. Mt Gox in Tokyo in 2014. As a result, 850 coins bitcoin worth approximately US $500 million vanished.
In addition, the threat is also estimated to come from a very high level of volatility of the currency the vitual. This year, the value of Bitocin surging recorded 380% to a record high. However, in 2013, the virtual currency value recorded ever sharp slump of up to 50%
"On a global level, there is an urgent need for clarity of regulations regarding criptocurrency, considering the high growth in the market," said Daniel Heller, former head of financial stability the National Bank Switzerland.