September 30, 2020

Nick Szabo believes that central banks will invest in cryptocurrencies

Nick Szabo believes that central banks will invest in cryptocurrencies

On January 9, crypto industry veteran Nick Szabo spoke at the Bitcoin conference in Tel Aviv. He told a story digital assets and appreciated the potential of virtual currencies.

According to Szabo, Central banks of various states will buy cryptocurrency in order to diversify foreign exchange reserves. Nick stated:

“There are situations when the Central Bank does notmay entrust its bonds to a foreign central bank or government. In this case, the Central Bank can keep bonds in Switzerland, however, this option is not the best, since the Swiss government can be pressured by external political forces. Therefore, the most reliable method of storing reserves at the moment is cryptocurrencies. ”

One of the first central banks to beinvest in cryptocurrencies, the Central Bank of Russia may become. According to the teacher of the Russian Academy of National Economy Vladislav Ginko, the Russian Central Bank plans to buy $ 10 billion in Bitcoin in the first quarter of 2019. In total, the Russian government will invest in cryptocurrency about $ 470 billion, which are stored in the reserves of the Central Bank.

Sabo believes that in 2019 cryptocurrencies will bevery popular in countries with a weak national fiat currency. In addition, sanctioned states will use digital assets to circumvent the economic embargo. According to Nick, the development of the blockchain industry will be facilitated by payment protocols for performing instant transactions between networks of different virtual currencies. As an example, he called the Lightning Network protocol, which allows cryptocurrency transfers between blockchain nodes using bidirectional payment channels.