Join Telegram channel and get updated

Crypto security issues are of prime concern, especially after a $500-million security breach in Japan, and the possibility of volatile swings in the price of unregulated cryptocurrencies. The second most prominent reason why central banks around the world are not happy about cryptocurrencies is the way it allows people to transact by storing value in the form of decentralized digital currencies.


At this point, the ECB does not see cryptocurrency as a threat to their monopoly, but it’s unclear if and when this attitude might change in the future. However, it’s interesting to note that although the central bank is pushing this rhetoric to the public, they are constantly exploring ways to eliminate cash and centralize this monetary structure preventing people from choosing alternative currencies.


Japan is still ruled by the cash. While credit cards are acceptable, many huge financial transactions are still being conducted in paper money. The Japanese have an innate distrust of debt. Moreover, cash transactions are more difficult for the government to track. For the time being, Japanese are considering cryptocurrencies such as Bitcoin, only as a way of investment rather than a method of payment. However, the Japanese government did take note of the recent $500 million theft of digital currency from Tokyo’s CoinCheck, Inc.


At the moment, there are no plans from the Japanese government to issue any form of cryptocurrency. However, Japanese people stockpiling cash due to draconian negative interest rates might be serving as the catalyst for their interest in the digital currency. In fact, the country is becoming one of the biggest markets for cryptocurrency with 40% of the Bitcoin trading from October to November 2017 being conducted in Yen. Germany is another cash-friendly country.


The Deutsche Bundesbank is wary of the Bitcoin’s speculative nature and is hesitant to include cryptocurrency in its established business model. However, the bank has shown interest in developing cryptocurrency technology into a payment system. This interest makes sense as Berlin is dubbed “Bitcoin Capital of Europe.” Germans enjoy dealing in Bitcoins from buying real estate and booking holidays to dining in bars and paying for education. Hence, the shift in Germany towards cryptocurrency is quite evident.

Join Telegram channel and get updated


One central bank paying positive attention to cryptocurrencies is the Bank of England. It is investigating the technology for protection from cybercrimes and improvement in the speed of digital payment methods between buyers and sellers. However, the Bank of England is not currently considering introducing its own cybercurrency.


The Bank of Russia has called cryptocurrency a pyramid scheme. It intends to block relevant websites that may enable its citizens to invest in Bitcoin. Russia has declared cryptocurrency illegal even though President Putin’s internet ombudsman, Dmitry Marinichev, is currently building, what’s called the Russian Mining Center that has raised $53 million to-date. The National Bank of Poland went overzealous with its attempts to discourage its people from using cryptocurrency.


Central banks are clearly interested in the potential of blockchain technology but are unhappy about a currency not within their control. The possibility of a viable, quick, and transparent monetary technology outside the control of the massive central banking system is making these bankers nervous. It could diminish their almost boundless powers. From the viewpoint of the central banks, the only possible solution is to eventually issue their own cryptocurrency and control it.


Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.

Subscribe to our Newsletter