Professor of the University of South Carolina and Bank of Canada consultant Warren Weber is considering the possibility of building a world financial system based on bitcoin in place of the currency.
After conducting a study in which he compared bitcoin and the gold standard, he came to the conclusion that they have similar features, namely, lack of control by the authorities and a limited number. It is believed that the maximum number of bitcoins that will ever be produced equals 21 million digital coins. At the same time, the reserves of precious metal on the planet are gradually decreasing.
According to the professor, the use of crypto-currency as a standard could bring such economic benefits as higher predictability of prices for goods and services (due to the constant speed of appearance of new bitcoins) and liquidity of resources. In addition, investments now directed to protection against currency fluctuations could be used in a more efficient direction. As a result, the financial system would become more stable.
“However, the implementation of the bitcoin standard may be complicated by the fact that national central banks will actively oppose this process, since they may lose the ability to influence the economy through accounting and interest rates and receive income from the issue of money. In addition, given the current pace of technology development, the financial system may appear more efficient and cheaper in using cryptocurrency than bitcoin, “said Warren Weber.