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Can banks create their own cryptocurrencies?


Moses
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Hello, I have been reading about cryptocurrencies and their origins. I'm interested in investing in cryptocurrencies. I noted that Bitcoin is conquering the world of cryptocurrencies. Bitcoin is the most popular cryptocurrency in the world. Now, I'm wondering if banks can create their own cryptocurrencies. Help me understand if there are banks who own cryptocurrencies or are planning to create them.

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Hello Moses, 
Actually, a couple of central banks are on the verge of coming up with their own digital currencies. For example, the JP Morgan bank, which is a commercial bank, has already created its own cryptocurrency known as the JPM coin that will be used for transaction purposes. With this coin, deals with allying business partners will be conducted at the moment.
Even though most cryptocurrencies are highly volatile, this cannot stop the Central Banks from coming up with their own digital currencies. 
CBDCs are meant to solve issues such as ineffective payments.
Though most CBDGs projects are still at their initial stages, most banks are working towards making this a reality.
Therefore, it is evident that even though the majority of banks have not introduced their own cryptocurrencies, most of them are active in making sure that they can operate with them.

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The first time the banks intervened in cryptocurrencies was to warn users against uncontrolled private money. However, banks have since accepted cryptocurrencies to the extent of wanting to create their own. But is the enthusiasm justified?
Possible Reasons
In addition to accelerating payments, central banks plan to use virtual currencies to counter private-sector alternatives such as Facebook’s Libra. Security is also another reason. Suppose several banks choose a cryptocurrency for transfers among themselves. Since they’re not part of the loop, a hacker will not be able to access the funds. 
Who to Watch
China is expected to add a digital Yuan to its financial infrastructure. The BoE is also working on a similar currency inspired by Bitcoin. Not forgetting the RBA’s research on a virtual Australian dollar. When it comes to private banks, J.P. Morgan hinted at its virtual coin last year in February. Dubbed JPM Coin, the cryptocurrency will facilitate transactions between institutional customers.
 

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Hey Moses,

There’s a number of central banks around the world looking to issue their own digital currencies. 

Recently, Bank of England’s Governor said the UK is eyeing a new form of digital currency as the country prepares to restructure its future following the Brexit and because it experienced the worst recession ever due to coronavirus pandemic. 

“We are looking at the question of, should we create a Bank of England digital currency. We’ll go on looking at it, as it does have huge implications on the nature of payments and society,” said Governor Andrew Bailey.

“I think in a few years time, we will be heading toward some sort of digital currency,” he added.
 

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