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ING foresees Bitcoin protocol similar to central banks

Thursday 17 July 2014 14:22 CET | News

A future improved version of the Bitcoin protocol should integrate similar capabilities to those of central banks around the world, according to a video presentation posted by ING on the online platform of the money management company eZonomics, coindesk.com reports.

As such, the protocol could control digital currencies in a similar way to government-backed central banks, according to a video presentation posted by ING on the online platform of the money management company eZonomics, coindesk.com reports.

In the respective video presentation, Teunis Brosens, ING economist argues that Bitcoin could be in the likes of traditional currency in terms of efficiency, by implementing a specific algorithm which matches money supply and demand, the same source cites.

Brosens further admits that ING is confident that Bitcoin meets only 1 (money is a means of exchange) of the 3 (unit of account, store of value) central tenets of traditional currency due to its volatility and lack of oversight. Traditional currencies, he highlights, do not register notable fluctuations in value due to the regulation of money supply and prices through interest rates whereas Bitcoin suffers from this drawback.
 


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Keywords: ING, Bitcoin, digital currency, crypto-currency, protocol, central banks, traditional currency, transaction
Categories: Payments & Commerce | Online Payments
Countries: World
This article is part of category

Payments & Commerce