The head of the payment policy in Australia is the equivalent to the Federal Reserve in England. They have come out to say that cryptocurrencies do have their strengths, but they also have their weaknesses. Central banks don’t have any need for them any time soon.
To go into more depth about this, Tony Richards has come out and compared Bitcoin’s own scale to that of a commercial transaction processing outfit. He went on to note that the peak of the Bitcoin craze really did see over 4.5 transactions happening every single second. The infrastructure of the credit card provider known as Visa however has been able to scope their infrastructure so that they can handle 65,000 every single second. When you look at the rate that Bitcoin have, and you think about the fact that they had over 10,000 transactions queued up at this point, it really does put this to shame.
The episode has also pointed to the face that the whole thing is very scalable and that there are plenty of problems with Bitcoin as a system. This has been covered in one of our other articles. The head of the payment policy has also come out to say that there are problems with the governance system when compared to Bitcoin. Edwards, another high-end team member has released a statement saying that part of the attraction with Bitcoin is that there is no central system. The problem here is that this can also come with its own problems. If you do not have a central governance system that is capable of advancing the Bitcoin idea then this may not always satisfy the mainstream users that are present. For example, when you look at then authorisation for Bitcoin you will find that it is a very immediate transaction. Bitcoin users however are advised to wait for six blocks to be created. This translates to about an hour, before they can even be sure that their own transactions are final. When you look at other observers around the world, you will find that Edwards believes that Bitcoin should be criticised. Interestingly enough however, he has also come out to say that he does see a role for the idea of blockchain technology. He believes that it could easily be used for internet banking, and that things like cross-border financing, post-trade activity and more are all present on the equity market. They have however, shown that Bitcoin and cryptocurrency in general does have the ability to shake things up.
Edwards also believes that cryptocurrency and Bitcoin in general is completely useless in its current state, and the solutions that it is providing in general really won’t do anything for the world of banking as it stands. Included in his statement was the fact that the cryptocurrency has been hacked on numerous occasions in the last couple of years and this cannot be compared to the fact that the main banking exchange has held an impeccable record for years now.
So for right now, Edwards believes that the Reserve Bank should not create a blockchain version of the AU dollar. He has agreed however that if cryptocurrencies were able to try and increase their efficiency, and if they were able to make the most out of the transactions that they put out, that the whole thing could easily become way more efficient than it is right now, so this is incredible to say the least.