The Consensus 2016 conference, a blockchain technology summit, wrapped up today in New York City. Of note, it was co-hosted by Digital Currency Group.
DCG is a very powerful insider group. It is an investment firm focused on bitcoin and blockchain startups. Former Treasury Secretary Larry Summers recently became an adviser to the firm. Western Union is an investor, along with major Silicon Valley venture capital firms.
It makes sense to pay attention to what the players at this firm see developing.
At the conference, according to CNBC, DCG CEO Barry Silbert predicted that the U.S. Federal Reserve and the People's Bank of China will seek to digitize their current fiat currencies, issuing something akin to RMB-coin, or dollar-coin.
"There's going to be an important distinction between central banks' coins and bitcoin," Silbert said Monday. "They're certainly not going to cap the output."
That is, Bitcoin is doomed and government central banks will be running the key digital currencies.
Summers, who was also at the conference, put an exclamation point on that (via CNBC):
Summers also attempted to dash any hopes that bitcoin — which has been embraced by some pro-anarchism communities — could create anything like "a libertarian paradise." In fact, he said that existing laws about cross-border money transfers will "for sure, for sure, for sure" be changed to cover virtual currency.These players know what is coming. Digital currencies will come under the purview of the government and become a method by which all spending and investments will be tracked.
Silbert didn't even attempt to hide the fact that central banks will be able to print digital money at will and will also be able to track transactions of all individuals who use such digital coins.
There are a wide range of benefits for central banks ranging from tracking money's velocity and its usage to easier issuance of stimulus "helicopter" money, sources said...
Silbert added that central banks' digital currencies, which he characterized as a likely outcome (if not virtual certainty), are "only going to enhance the government's ability to see what you're doing."-RW