Friday, February 19, 2016

Central Banks Eye Blockchain Tech

The Coindesk article above details Bitcoin's recent price rise past 420, from its recent lows of about 377.  This development comes after the cryptographic coins' value nearly doubled during the final financial quarter of 2015.  

Of course, just as with gold having its best first quarter to a year in over 30 years, what we're witnessing is not the appreciation of assets classes, but rather the depreciation of the currencies those asset classes have been priced in.

As people witness their purchasing power decreasing, the flight to sound money occurs in several phases.  These phases, three of them as it were, can be found described in detail here.

What really caught my attention about this Coindesk article, however, had nothing to do with Bitcoin's value relative to any fiat currency.  It had to do with the central banks looking into blockchain technology.  Take a look at this, courtesy of

 " Other developments coincided with the price appreciation that bitcoin enjoyed during the week, as it was announced that the central banks of both the eurozone and China are looking into blockchain technology.
More specifically, the European Central Bank revealed 17th February that it is delving into how this technology could either improve or hamper the infrastructure the region uses to settle securities and payments.
In addition, Zhou Xiaochuan, governor of the People’s Bank of China, stated in an interview with Caixin Weekly that the central bank is exploring blockchain, as well as other technologies, to establish and run an electronic cash network. "

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