01-28-2021, 01:22 AM
Blockchain is a mechanism, that enable "trusted digital shared ledger".
One of blockchain's implementation is for payment through digital currency, there are many other use-cases.
Looking at description of this "Quantum Financial System" it's more of competitor for "SWIFT".
https://www.swift.com/
And it uses blockchain to to enable 'shared ledger', having said that "SWIFT" is also currently transforming their system and operating model to enable 'shared ledger' between participating intermediary parties, which shall improves transparency.
Like I mentioned above non-government / centralized authority controlled digital currencies, like bitcoin, ethereum and others can be both good and bad, depending on the perception.
Volatile movement of bitcoin for example, it can be 'bad for businesses'.
(Although good for 'investor' a.k.a currency trader/speculator/gambler)
It will make long term investment very hard to plan as the value of the currency moves in volatile manner.
A much simplified example:
Imagine planning to grab a BigMac by carrying 1 BTC only to find out that the BigMac price has changed to 1.5 BTC once you arrived at McDonald. You returned home to carry 2 BTC and now the BigMac price has gone up again to 3 BTC.
When government backed currency moves up and down in volatile manner, the central bank will usually either distribute more (when it goes up) or pull from circulation (when it goes down) in order to make the value relatively stable.
Such 'action' is impossible to do on Bitcoin or Ethereum since nobody have the central authority to issue more or de-issue / pull out the circulated digital currency.
Mind you that US Dollar is a bit different, it's not 'federal government backed currencies', the circulation of US Dollar is controlled by the Federal Reserve, and Federal Reserve is a union of private bankers. Which of course put the interest of 'private bankers' as it's top priority. Federal Government of USA (ie Presidential office) doesn't have control over US Dollar currency circulation.
Truly government controlled currency is for example Chinese RMB.
That's why the Chinese government has full control over it's valuation.
Which Federal Government doesn't have over US Dollars.
All bank in China (PROC that is, excluding Taiwan and Hong Kong) are 100% government owned.
Unlike private Bank in the US, they do not operate to make or seek 'profit' in Chinese RMB, they operate to circulate RMB as fast as possible and as wide as possible.
That's why they can 'engineer' the value of their currency, to make it at 'certain level' thus their economy can remain competitive. They do that as the goal of Chinese government is to create as many employment opportunities as possible for their citizen.
This is the background on why some people in the US are accusing China of doing 'currency manipulation'.
Which is true, China does currency valuation engineering, it's because they can and they have full control over it as all banks are government bank and operate by not seeking profit in currency. In which US government cannot do.
Currency manipulation is not a bad thing or a crime.
One of blockchain's implementation is for payment through digital currency, there are many other use-cases.
Looking at description of this "Quantum Financial System" it's more of competitor for "SWIFT".
https://www.swift.com/
And it uses blockchain to to enable 'shared ledger', having said that "SWIFT" is also currently transforming their system and operating model to enable 'shared ledger' between participating intermediary parties, which shall improves transparency.
Like I mentioned above non-government / centralized authority controlled digital currencies, like bitcoin, ethereum and others can be both good and bad, depending on the perception.
Volatile movement of bitcoin for example, it can be 'bad for businesses'.
(Although good for 'investor' a.k.a currency trader/speculator/gambler)
It will make long term investment very hard to plan as the value of the currency moves in volatile manner.
A much simplified example:
Imagine planning to grab a BigMac by carrying 1 BTC only to find out that the BigMac price has changed to 1.5 BTC once you arrived at McDonald. You returned home to carry 2 BTC and now the BigMac price has gone up again to 3 BTC.
When government backed currency moves up and down in volatile manner, the central bank will usually either distribute more (when it goes up) or pull from circulation (when it goes down) in order to make the value relatively stable.
Such 'action' is impossible to do on Bitcoin or Ethereum since nobody have the central authority to issue more or de-issue / pull out the circulated digital currency.
Mind you that US Dollar is a bit different, it's not 'federal government backed currencies', the circulation of US Dollar is controlled by the Federal Reserve, and Federal Reserve is a union of private bankers. Which of course put the interest of 'private bankers' as it's top priority. Federal Government of USA (ie Presidential office) doesn't have control over US Dollar currency circulation.
Truly government controlled currency is for example Chinese RMB.
That's why the Chinese government has full control over it's valuation.
Which Federal Government doesn't have over US Dollars.
All bank in China (PROC that is, excluding Taiwan and Hong Kong) are 100% government owned.
Unlike private Bank in the US, they do not operate to make or seek 'profit' in Chinese RMB, they operate to circulate RMB as fast as possible and as wide as possible.
That's why they can 'engineer' the value of their currency, to make it at 'certain level' thus their economy can remain competitive. They do that as the goal of Chinese government is to create as many employment opportunities as possible for their citizen.
This is the background on why some people in the US are accusing China of doing 'currency manipulation'.
Which is true, China does currency valuation engineering, it's because they can and they have full control over it as all banks are government bank and operate by not seeking profit in currency. In which US government cannot do.
Currency manipulation is not a bad thing or a crime.