- The End of Privacy? Central Banks Plan to Launch Digital Coins
by Eva Szalay in London, Colby Smith in New York and Thomas Hale in Hong Kong, https://archive.is/o/UuuCH/https://www.ft.com/
As regulators crack down on cryptocurrencies, policymakers develop state-run versions
The dilemma central banks face over how to tackle the world’s rapidly growing cryptocurrency market has been thrown into stark relief in recent days by two very different announcements.
On Thursday, global regulator the Basel Committee on Banking Supervision said that cryptocurrencies are some of the world’s riskiest assets, and called for tougher capital rules and stricter oversight of investors’ holdings.
However El Salvador had just a day earlier announced that it would make bitcoin a legal tender — the first country in the world to do so. Regulators and central banks are fighting for control of the monetary system as cryptocurrencies become an increasing challenge to fiat currencies, threatening to blunt the levers policymakers rely on to control the running of their economies.
“It is no surprise that governments are not inclined to give up their monetary monopolies,” said Marion Laboure, an analyst at Deutsche Bank. “As cryptocurrencies begin to seriously compete with regular currencies and fiat currencies, regulators and policymakers will crack down.”