in the opening speech to a cash Symposium of the German Federal Bank, whose President Jens Weidmann Kryptowährungen speaks as the bit coin off as to be able to apply money or currencies. He calls for a global Regulation and is convinced that digital money for some time will be a serious competitor for cash or bank deposits.
Walker said the concepts of money and currency were very limited on Bitcoin and other Kryptowährungen contact, according to a speech text released by the Bundesbank. The functions of money as means of payment, memory and arithmetic logic unit fulfilled Kryptowährungen limited, which is why he considers the term “Crypto token” for matching.
As a means of payment, as Kryptowährungen were also hardly use, because paying with them is comparatively cumbersome. Walker points out that transactions can take several minutes: “it may be acceptable for a car purchase, paying at the till Bitcoin not suitable for thus but.”
No stability gain due to high power consumption
important prerequisite for a functioning money system was confidence in recoverability. For banknotes, central banks would create this trust, at Bitcoin, however, confidence should produced among others by more complicated algorithms, which required ever-increasing power consumption. Walden referred to calculations by Bundesbank Board Member Carl-Ludwig Thiele, after which consumes a Bitcoin transaction 460,000 times more power than an ordinary bank transfer.
Overlooking the high value fluctuations of Kryptowährungen, Weidmann said electricity consumption have no stability gain, what restricts the availability as a means of payment.
“a means of payment that greatly increase in value, would give no one, no one wants to accept a cash, losing heavily in the value,. Bitcoin is inefficient from an economic and ecological point of view.”
Global regulation makes sense to
according to a regulation of Kryptowährungen up to the ban, Weidmann said claims, potential losses alone justified no ban. It is important to enforce existing money laundering legislation. He pointed out that currently the European anti-money laundering directive is revised so that operators of bureaux de change and providers of E-wallets in the future within the framework of the usual due diligence obligations for financial institutions need to control their customers. National or European regulations may be limited, but effective, so he wanted set the topic G20 agenda to .
Potential risks to financial stability might offer cause for regulatory intervention, which are still limited. This could change, however, when banks invest more in Kryptowährungen, provide money to speculate with digital token investors or allow crypto markets liquidity lines. The banks would have to inferior corresponding risks with sufficient equity, what would be expensive from Weidmanns perspective: “In the face of high levels of risk substantial capital requirements would be safe.”
Don’t worry about the monetary policy
because the equivalent of all crypto token in comparison to the global money supply was low, must worry currently the monetary policy to their effectiveness. Skeptical the Bundesbank President to emit digital Central Bank money is expressed. By whose interest or the possibility of negative interest rates would extend money-political room for manoeuvre while individuals not on cash could Dodge. But, there is a “significant catch”: digital Central Bank money could come into direct competition with bank deposits. If commercial banks but would be required to offer to prevent a conversion of bank deposits in digital Central Bank money, interest-rate spreads their margins in the deposits lending would fall further, which could be problematic for the financial stability.
Warning before digital Bank storm
an even bigger risk Weidmann regards digital “bank runs”. If you could transfer savings by clicking on your own account at the Federal Reserve to flee from the private financial system, the threshold for a run on the banks was probably much lower than in the analog world. An example was also called Walker: in the crisis year 2007 in the United Kingdom not only the customers of Northern Rock, but also the other British banks brought their sheep at the Federal Reserve in the dry, they thus had the entire banking system completely destabilized.
The President of the Federal Bank was one to critics, which made the possibility of money creation by commercial banks as a weakness of the current system of money, because they are a major cause of adverse credit cycles. Historical experience with a single-level banking system and Central lending by the Federal Reserve were “sobering”, planned economies had shown that the State or the Federal Reserve were not better bankers.
No competition for cash is evident
Walford convinced that demand for crypto tokens and digital Central Bank money is not even if central banks keep the payment traffic always technically up to date. He vewies on efforts of the Eurosystem, to allow banks and Central Bank money payments in real time until the end of the year. Thus about instant transfers between private individuals would possible around the clock every day of the year, no matter which bank they have their account.
Referring to the General Manager of the Bank for international settlements, Agustín Carstens, who had described Bitcoin mixture of financial bubble, snow ball and environmental catastrophe as Weidmann said he considers Kryptowährungen at least for no convincing alternative to government spending:
“for a stable monetary and financial system we need no crypto tokens, but central banks committed to price stability and effective bank regulation.”