Earlier this month, Turkey’s Central Bank governor Murat Cetinkaya stressed that bitcoin could contribute to global monetary stability through the decentralized and peer-to-peer business network.
Turkey’s Central Bank feels threatened by Bitcoin
The decentralized structure and constitution of the Bitcoin type eliminate the need for central entities and network authorities to deal with the couple parties. Anyone in the Bitcoin system can send and receive transactions without emissaries freely and without problems.
As so, the Bank of Finland’s research paper described Bitcoin as a “decent” decentralized financial network, because it works with its own rules and patent, definitely creating a new economy.
Bitcoin is a protocol-led monopoly, not an organization that manages. Familiar cartels are run by agencies that operate discretionally to determine and then modify prices, bids, and rules. Patents are often regulated to prevent or at least mitigate abuse of power, the Bank of Finland newspaper reported “read here.”
Various governments and central banks, including the Turkish Central Bank, are concerned about the impact that global industry has imposed on the financial sector over the past year and how it could continue to evolve into a premier store, eventually exceeding gold and, possibly, such as the US dollar and the Japanese yen.
If Bitcoin continues to grow at an exponential rate regarding daily transaction volume, daily trading volume, user base, infrastructure, and adoption by major financial institutions, bitcoin will inevitably become a significant component of the global economic sector and a competitor for both governments – issued coins and central banks.
“Digital coins pose new risks to Central Banks, including their power over the money supply and price stability, and the communication of monetary policy. Cetinkaya said: Also, the Turkish Central Bank said that digital coins could be an important element for a free economy cash, and the technologies utilized can help to accelerate and streamline payment systems, “said Bloomberg’s Eric Lam, who covered Cetinkaya’s conference in Istanbul in early November.”
Bitcoin has become a challenge for Central Banks
Bitcoin becomes a challenge for many authorities and Central Banks, primarily because it forces governments to take one of two choices. Either to adopt Bitcoin and to be at the forefront of Bitcoin development or to separate its economy by denying a Bitcoin.
Several studies, including Facebook IQ research, have shown that above 90% of the world’s millennials have lost confidence in Banks and significant Financial Institutions. The millennials feel detached from Banks, and I think Banks do not understand or clarify their needs.
However, the prominent venture capitalist and A16Z partner Balaji Srinivasan have told that by 2040, millennials will never know a world without side effects.
“Until 2040, everyone below the age of 30 would never have known a world without Bitcoin, and it could be gold, which is a long-term replacement,” Srinivasan said.
Beside the crackdown on Commercial Banks’ fraudulent activities and the decline of the worldwide monetary system, the Bitcoin is in an optimal position to evolve into the next global currency. Turkey’s Central Bank feels threatened by the bank’s rapid growth rate, as it could make it no longer necessary in the long run.