The good people at BBVA Research recently published a paper on central bank digital currencies (Central Bank Digital Currencies, Gouveia et al, March 2017) in which, amongst other conclusions, the authors say that “we also consider it likely that a scenario in which CBDC is anonymous, universal and non-yield bearing will be implemented”. But why is this “likely”? Why would any central bank bother setting up the form of distributed ledger that the authors envisage in order to implement something of such obvious utility to criminals, terrorists, money-launderers, tax-evaders and corrupt politicians? I don’t get it.
Forum friend Ian Grigg, who I always take very seriously indeed on any such topic, wrote about Corda on his blog and concluded with a powerful statement. Bitcoin told the users it wanted an unstoppable currency - sure, works for a small group but not for the mass market. Ethereum told their users they need an unstoppable machine - which worked how spectacularly with the DAO? Not. What. We. Wanted. Corda is the only game in town because it's the only one that asked the users. It's that simple. From Financial Cryptography: Corda Day - a new force xxx It seems to me, however, what Ian is pointing to as the greatest strength of their approach is also the greatest weakness. A staple feature of unimaginative management consultants presentations about innovation is some variation on the statement by Henry Ford that if you had asked users what they wanted, they would have asked for faster horses coupled with some variation on the statement by Steve jobs that it was pointless ask...
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