Ethereum founder Vitalik Buterin, speaking at Swell a conference hosted by Ripple in Toronto, stated that central banks would not find it easy to create their own cryptocurrencies. As a result, they would not have the capability to replace Bitcoins or any other form of cryptocurrency for a long time to come.
Buterin said that even though the cryptocurrency market is heating up with a variety of different currency options, he’s not really worried about competition from any other currency.
He further stated that it would take years for any country to come up with a digital cryptocurrency which can work as efficiently as Bitcoin or Ethereum.
According to him, even if the central banks launch such a currency, it would not actually be a cryptocurrency and it would be just limited in terms of coding as well as the server backup which it has. Blockchain technology is not yet fully explored.
With the cryptocurrencies increasing significantly in value and emerging as an asset class, more and more people are paying attention to cryptocurrencies. The overall market for cryptocurrencies is over $100 billion.
Coupled with the rise in the cost of cryptocurrencies, more and more industries are also paying attention to blockchain technology which is being used. That is why there is a belief in some of the circles that the central banks would be using this blockchain technology in order to create their own cryptocurrencies.
There are also rumors that Federal reserve is already working on creating Fedcoin which would be a digital asset. However, Federal Reserve has declined the same.
As the blockchain technology becomes more and more popular, many people question whether it is the technology which is more valuable as compared to the actual currencies. However, with that being said the price of Bitcoins, as well as XRP, keeps on increasing owing to the ease of fund transfer facilities which they provide.
According to Buterin, these discussions are just theoretical and the central banks, as well as other entities all over the world, would not be able to create their own cryptocurrencies. While it remains to be seen whether central banks are actually able to create cryptocurrencies or not, the truth is that at least the interest in the technology is growing by leaps and bounds.