The world’s central banks will begin to hold digital currencies in the next year, said Peter Smith, CEO of a company to trade crypto-currencies with CNBC. He said that 2018 will be the first year where we begin to see the central banks storing crypto-currencies.
He explained that these institutions are likely to buy Bitcoin and Ethereum as part of their reserves. They hold reserves of gold e-currency to enable them to act in the event of a crisis on the markets.
The growth of Bitcoin will encourage banks to operate on this market
The rise of Bitcoin could mean that some monetary authorities will have to start the hold, he added. Mr. Smith confirms that the Bitcoin is already among the 30 major currencies and this trend may accelerate.
Many experts believe that crypto-currencies could be traded by central banks. In an article relayed by Coindesk, Eugene Etsebeth, a former high official of the central bank of south africa, said that the digital currency would suit a new requirement. He stated that Bitcoin would be considered to be the digital gold. Etsebeth has indicated that by 2018, the central banks will see the Bitcoin and other crypto-currencies become the most major currencies in the world.
The digital currency issued by central banks
Peter Smith, who is talking with many regulators, went further in declaring that the central banks will begin to issue their own digital assets in the next year. Some monetary authorities already undertake research for the creation of their own crypto-currencies, last week. There is in particular Saudi Arabia and the united Arab Emirates.
The central bank of China has also shown their intention to launch a new virtual currency. Some senior officials have also cautioned investors about the dangers associated with the development of crypto-currencies. Mario Draghi, the governor of the european central bank, said that the market of crypto-currencies is not yet a wall.
Source : CNBC