Crypto craze may drive regulators to back their use
Central bankers globally are wary of rising interest in cryptocurrencies since Facebook decided to launch one of its own. Limited supply and wider acceptability of cryptocurrencies could be the key reasons for a surge in Bitcoin prices How’s cryptocurrency trade carried out? Cryptocurrencies, including Bitcoin, are digital currencies, wherein the transaction records are verified and maintained on a decentralized system, which uses cryptography, replacing a central authority for maintaining records. Most central bankers regulate the amount of money supply and determine interest rates to ensure price stability, but will not be able to have control over private the supply of a cryptocurrency. The Bank of International Settlements, along with seven other central banks have published a report that lays out the norms for central bank-backed digital currencies.
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