Central Banks could substitute gold reserves for cryptocurrencies
During the Bitcoin Summit of Israel, held at the University of Tel Aviv, was attended by one of the great characters of the cryptographic industry since its inception, Nick Szabo.
During his speech, the well-known enthusiast not only highlighted the potential of digital currencies, but also explained the possible scenarios where different institutions could use them, including the Central Banks.
Szabo is a faithful believer that, sooner rather than later, the different Central Banks around the world will decide to create their own digital currencies, since the advantages that these would offer them are too great to ignore. His reasoning is not at all far-fetched, since, recently, the BPI published a report that made sure that approximately 70% of the maximum financial institutions of each State were investigating the issuance of a CBDC (acronym in English for Currency). Digital Central Bank).
However, Szabo’s predictions do not stop there. According to the cryptographer, it is possible that some Central Banks consider changing their gold reserves by cryptocurrencies.
According to the rapporteur, this would be for two main reasons. The first is that “there will be some situations in which a Central Bank can not trust a Central Bank or foreign government with its bonds, for example.” The clear solution to that is the use of digital currencies.
The second has to do with the vulnerability of the gold reserves, which may represent a risk for each country. “The other problem with gold reserves is that they are physically vulnerable. When the Nazis conquered countries in Europe, the first place they went to was the gold reserves of a Central Bank. “
Of course, there are many people who do not share the opinion of this enthusiast, especially because the precious metals markets have had significant gains recently. In fact, last Monday the spot price of gold reached its maximum price in the last six months, reaching $ 1,288.03 per ounce.
But, despite this, during his speech in Israel, Szabo was very confident about the future of digital assets over precious metals.
Many consider that Szabo’s predictions should be particularly taken into account, since he has predicted several important and successful things. In 1996, the cryptographer predicted that soon the use of smart contract technology in autonomous organizations will be forthcoming. Two years later, long before the appearance of Bitcoin and Satoshi Nakamoto, he had designed a similar project called Bitgold.
That is why, many people within the crypto community believe in the statements of Szabo, who even came to claim that “Bitcoin could survive a nuclear war.”
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.