Crypto-money: between euphoria and anguish

During the recent World Economic Forum, the governor of the Bank of England, Andrew Bailey, revealed that he was not a great supporter of the current crypto-currencies. Bailey argued that they are not made to last and regulation will also have to frame the use of crypto. He also felt that current digital currencies are not in a position to have an impact on global finance. This skepticism repeatedly expressed towards crypto-currencies is certainly not a surprise, but it leads us to make a global reflection on the viability of these models in the future.

Although the Governor of the British Central Bank is highly critical of crypto-currencies, he is not closing the door to a major innovation in the sector. The banker advocates better regulation, especially to control the development of the stable corners. On the other hand, he says he favors the adoption of currencies under central bank control.

The confidentiality of transactions: a red line

The BoE boss is committed to the protection of privacy. He expresses his concern about the confidentiality of transactions offered by crypto-currency. However, he believes that the solution is right in front of us: to establish a standard that effectively governs the confidentiality of transactions. Such a standard could guarantee everyone a secure use of crypto-currency and make it a real means of payment and not a means of speculation.

Cryptos: a long-term investment first and foremost

Day after day, crypto-money is proving to be a financial investment of choice. Conventional financial players are not only beginning to widely accept it, but are also beginning to show significant support for it – albeit belatedly. However, only a tiny proportion of cryptos enthusiasts use them, for example to pay for their purchases. This explains why crypto-money is considered a long-term investment more than anything else. Although there is strong interest in crypto investments, the current level of adoption neglects day-to-day payments and favors conservation. Users prefer to grow their investment, which still makes it a high-potential financial instrument, mainly because of its highly volatile nature.

Lack of value stability, a black spot

The governor of the BoE says so. He considers that crypto-money will last and that it is indeed a major digital innovation in payments. On the other hand, he points out that none of the current digital currencies meet the specifications capable of making them a reliable means of payment (or even investment). Mr. Bailey questions the volatility of crypto-currencies, which violently impacts their value! He considers that this characteristic is an obstacle to their usefulness and adoption in the long term.

LODE, a revolution in crypto-money but above all silver metal

In contrast to the remnants of crypto-assets, LODE has built a digital money system backed primarily by investment-grade silver bullion. The reserves of silver metal are insured and audited by a third party, which guarantees the user transparency and security, but above all a physical availability of the silver metal put to work. These parameters make LODE an option that offers stability, far from the roller-coaster ride that the rest of the crypto industry (BitCoin…) experiences. In addition, LODE has a strong and innovative community of contributors who master and appreciate the project. By actively developing the LODE ecosystem, the community of contributors aims to create a new “honest” metal currency.

With the strong criticism of crypto-currencies, in this case from leading central bankers, new shoots are growing to install good financial practices in the promising field of crypto-currencies. Innovations that advocate compliance with specifications but also ensure security and stability, before the gain.

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(Featured image by Roger Brown via Pexels)

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