Central Banking in Times of Technological Progress

sagan (30)in #cryptocurrency • 7 years ago (edited)

The European Central Bank has issued what appears to be both an acknowledgement of the central place that cryptocurrencies will hold in the future and a veiled threat against any currency which seeks to subvert central bank authority.

https://www.ecb.europa.eu/press/key/date/2017/html/ecb.sp170724.en.html

Here is the conclusion:

"Technological change is an integral driver of economic development. It is disruptive at times and impacts not only economies but also our societies. Central banks are not isolated from these processes.

Central banks are well advised to be prudent and forward-looking when approaching the respective challenges – just as they are when implementing monetary policy to honour their mandates.

Facing the uncertainties of technological change, central banks therefore should

Adapt policies to take into account technology-driven socio-economic changes,
Adopt appropriate technology that supports the various functions and tasks of a central banks, and
Anticipate technological risks to our operations.

With these principles in mind, central banks can better manage the challenges stemming from technological change, even when it is disruptive. Used appropriately they can even help to improve our operations and efficiency."

#economics #central-banking

7 years ago in #cryptocurrency by sagan (30)

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sagan (30) 7 years ago

@srezz - Given your location and knowledge of European economics and history, what do you make of this paper released by the ECB? I realize it's a no brainer that central banks will try to undermine the legitimacy of cryptocurrencies, but I believe this is the first time that I've seen any central bank issue what seems to be an open challenge to blockchain technology that is not in their control. The next few years should be pretty interesting.