Nick Szabo: Central banks could turn to gold cryptocurrency reserves

Economy

At the Bitcoin Summit in Israel held at Tel Aviv University on January 8, veteran cryptographer Nick Szabo explained that the use of censorship-resistant cryptocurrencies would increase in trade-sanctioned countries and economies suffering from failed monetary planning. Szabo also argued that the world's central banks could turn to cryptocurrency reserves to supplement national gold reserves.

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Nick Szabo strongly believes that clueless economies and sanctioned countries will seek refuge in crypto-currencies

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The cryptographer Nick Szabo is an interesting character and a well-known figure in the cryptocurrency community. Long before Satoshi Nakamoto introduced Bitcoin, Szabo designed the Bitgold concept in 1998. Two years earlier, the scriptures planned the use of smart contract technology and autonomous organizations. On January 8, Szabo delivered a speech at the Bitcoin Summit of Israel at Tel Aviv University and gave the crowd a lesson in history on the use of currencies in the world. At the conference, Szabo told attendees that he was convinced that blacklisted countries in trade and regions facing hyperinflation would turn to digital assets. In the last two years, crypto-currencies such as BTC and BCH have gained traction in areas like Venezuela, Zimbabwe, and Iran.

According to participants in the cryptocurrency ceremony at Tel Aviv University, Szabo's keynote speech was a response to comments by Avi Simhon, senior economic policy adviser and head of the Israeli National Economic Council. Simhon Note at the summit, Bitcoin technology is "inherently inefficient" and "will disappear". In addition, the Prime Minister's economic policy advisor explained that the use of this technology on a global scale would result in a loss of "billions of dollars in real energy costs."

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Even central banks could attempt to store bitcoin reserves on gold

Of course, Szabo strongly believes in cryptocurrencies and his presentation explained the many benefits of the digital revolution. In addition, Szabo said it is possible that some of the world's central banks are turning to cryptocurrency rather than gold.

"There will be situations in which a central bank can not trust a foreign central bank or a government with their obligations, for example," said Szabo. highlighted during his conversation. "One solution that has been developed is to ask the Swiss government to reserve it for you. This is not a solution minimized by trust. The Swiss government itself is under political pressure and a less reliable solution is therefore cryptocurrency. "

Szabo continued:

The other problem with gold reserves is that they are physically vulnerable. When the Nazis conquered European countries, they first went to the gold reserves of a central bank.

In recent weeks, many policymakers and economists have said that the world is a world facing tumultuous times. Traditional investment instruments such as equities and equities have been extremely volatile, but the precious metals markets have recently recorded significant gains. In contrast, last Monday, the spot gold price hit a six months higher at $ 1,288.03 an ounce and gold futures settled at $ 1,289.90 an ounce. At the same time, due to increased demand and global shortages, palladium reached an all-time high in value this week.

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During the speech in Israel, Szabo seemed to be much more confident about the future of digital assets versus precious metals. Over the years, many crypto-currency advocates have taken the cryptographer's forecasts seriously because of his early predictions about the future of smart contracts. A member of the audience at the summit of Tel Aviv even city Szabo for saying that "Bitcoins could survive a nuclear war".

What do you think of Szabo's statements on cryptocurrencies? Tell us what you think about this topic in the comments section below.


Image credits: Twitter, Steph Vaughan, Shutterstock and Pixabay.


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