The power of Bitcoin of course is in its de-centralization, and its growing potential to pull money and activity away from the primary banking system. And while the cryptocurrency has yet to fully embrace all of its potential as a payment option and medium of exchange, one entity appears to be highly cognizant of its growth and is showing their fear by ordering banks under rgwue purview to push towards integrating instant payment platforms.
The European Central Bank (ECB) on Nov. 30 issued the clarion call to financial institutions that Bitcoin and other cryptocurrencies are definitely a viable threat to their control and authority, and that banks need to ramp up their efforts to get instant payment systems online to compete.
Banks should speed up the introduction of immediate payments, whereby money is received immediately and around the clock, to counter the allure of digital currencies such as bitcoin, said the European Central Bank (ECB).
“Banks need to implement instant payments as soon as possible and provide an alternative narrative to the ongoing public debate on the alleged innovation brought by virtual currency schemes,” said a member of the ECB’s executive board Yves Mersch as cited by Reuters.
Central banks are worried private digital currencies are threatening their control of the banking system and money supply. The regulators fear this could undermine the monetary policies they use to manage inflation.
At the same time, some central banks such as Sweden’s Riksbank and the Bank of England are considering introducing their own digital currency. The Riksbank may introduce the so-called e-krona soon to solve the problem of a dramatic drop in the domestic use of cash. The world’s oldest central bank was the first to issue paper banknotes in the 1660s. – Russia Today