(reasonably balanced?) cryptocurrency thoughts
(reasonably balanced?) cryptocurrency thoughts
It would be technically pretty easy, I think, to setup an official digital system that is just another form of the regular currency, like pounds sterling, where the system only kept track of "who owns this coin?" in terms of a public key without knowing or caring about the identity of the key holder.
2/?
(reasonably balanced?) cryptocurrency thoughts
A transaction where A gives a coin to B would then be handled by A creating a digitally signed message saying "the new owner of this coin is now this public key", specifying the public key of B. The central bank registers this transaction and B can verify that their public key is really registered as owning the coin. The central bank will not know who B is, it would only store a pub key without knowing who has the private key.
3/?
(reasonably balanced?) cryptocurrency thoughts
Of course such a system would not be a true "digital currency" since it is just a kind of extension of the existing currency. But it could be useful. Not for a true escape from the centrally controlled current financial system, but as a way of doing digital payments. The central bank would have a hard time blocking anyone because even though they see transactions happening, they would not know who is who.
4/4
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