The Bitcoin community is eagerly awaiting announcements of bitcoin and digital currency regulations from Central Banks of their respective nations. Most of the Central Banks so far published advisories regarding risks involved with digital currency transactions and watching the sector develop.
One of the “Big Four” professional services firm, Deloitte has recently published a report titled “State-Sponsored Cryptocurrency: Adapting the best of Bitcoin’s Innovation to the Payments Ecosystem”. In this report, Deloitte outlines the possibility of financial institutions using bitcoin like system governed by the Central Bank.
According to the report, it is highly possible for Banks in future to act as miners for digital currency units on a Blockchain like ledger under Central bank’s control. The report is based on the existing concept of FedCoin, announced by US Federal Reserve in collaboration with IBM and inputs from the Singaporean Central Bank.
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The futuristic system proposed by Deloitte report envisions Central Banks to create and control digital units similar to bitcoin or any other altcoin and link it to the respective fiat currency issued by the bank. These digital units will be considered as legal tender which can be used like bitcoin for money transmission