Will the crypto currency replace hard money

Bitcoin: The tough battle for acceptance

 

Anyone who bought the crypto currency Bitcoin at the beginning of the year can look forward to decent profits today in view of a new all-time high of more than 20,000 US dollars per Bitcoin - and thus belongs to a small minority.

Because just two percent of those over 16 in Germany, for example, have so far invested in Bitcoin or other crypto currencies. Around one in five (18 percent) can at least imagine doing that in the future. Most of the rest would like to steer clear of Bitcoin, Ether, Ripple & Co. And that although three quarters (76 percent) have now heard or read about it. A year ago, the proportion was still significantly lower at 68 percent. That is the result of a telephone survey of 1,004 people aged 16 and over in Germany on behalf of the Bitkom digital association.

“Cryptocurrencies like Bitcoin are just about to leave their niche in finance. This can be seen, for example, in the fact that large payment service providers are integrating crypto currencies or companies are investing Bitcoin as a capital reserve, ”says Patrick Hansen, Head of Blockchain at Bitkom. “Bitcoin is now seen less as a means of payment and more as an alternative investment such as gold. Other cryptocurrencies have a different focus, for example on payment transactions between machines in the Internet of Things. Cryptocurrencies do not replace traditional money, they complement it. "

Central bank digital money?

The increasing acceptance of crypto currencies in the economy and initiatives such as Libra, with which a global and more stable crypto currency is to be established, have also led to numerous initiatives by national central banks and the European Central Bank (ECB), which are thinking intensively about the introduction of digital central bank money.

The majority of German citizens are still skeptical about Bitcoin and other crypto currencies. Two thirds (66 percent) think they are too complicated, almost as many (65 percent) think they are only suitable for speculators who are looking for a quick price gain. However, 3 out of 10 (30 percent) also say that cryptocurrencies are a safe alternative to the established monetary system. Among the younger ones between the ages of 16 and 29, the figure is as high as 43 percent. And around every fourth respondent (28 percent) also thinks that cryptocurrencies are suitable as a long-term investment.

The digital currency Bitcoin continues to soar: After breaking the $ 20,000 record, its value rose even further on Wednesday evening. At midnight, the oldest and best-known cryptocurrency on the Bitstamp trading platform was reported at over 21,400 euros.

Bitcoin has benefited from several developments for some time. Basically, the interest in digital currencies seems to have risen again in the past few months after a prolonged lull - especially since the large payment service PayPal wants to enable its customers to pay with Bitcoin and other crypto currencies. In addition, the interest of professional investors seems to have increased after a long time, especially private investors with smaller funds, were interested in digital currencies.

The cryptocurrency, largely supported by Facebook, is now trading under a new name in order to emphasize its independence from the American Internet company. The renaming is part of a reorganization to a simpler structure, said the chief executive of the Geneva-based Diem Assocation, Stuart Levey, on Tuesday the Reuters news agency.

Diem, which means "day" in Latin, should become a digital coin linked to the dollar. Levey did not give a schedule for the introduction. First, the approval of the Swiss supervisory authorities must be given. Facebook remains an "important member of the association," which has a total of 27 members, Levey said. "We're not trying to cut all connections, by no means." The name change is intended to underline that the Diem Association "works autonomously and independently," he added. Diem seeks to differentiate itself from other crypto providers by addressing issues important to regulators and Western governments - including sanctions controls and financial crime, Levey said.

With its plans for its own digital money, Facebook had called on governments, supervisors and central banks around the world. In April, the Libra Association in Switzerland, which was founded to develop the Cyberdevise, submitted an application for approval as a means of payment. However, many governments have reservations about letting Facebook penetrate the financial sector with a digital currency. Because of the advance of cryptocurrencies, the European Central Bank (ECB) is now considering creating a "digital euro".