Prescott Regency - Will Cryptocurrency soon have a bank of its own?
2017 has seen a booming year for cryptocurrencies. For instance, Bitcoin's price has increased by over 300 percent since the beginning of the year. On the other hand, the price of Ethereum has also increased by over a whopping 300 percent. All the hype surrounding digital currencies has led the Bank of International Settlements (BIS) to explore the feasibility of how a central bank cryptocurrency may appear. There is added value to a central bank that includes a digital currency in their present monetary mix of reserves. However, such a bold move comes with certain risks. It has the possibility to cause disruption to the commercial banks' business model, as well as the market for existing cryptocurrency. Will Central Banks hold cryptocurrency apart from cash and reserve? Presently, central banks issue money in two different forms; cash and reserve. Cash are payments made in physical form, which can be used by anyone and can be directly exchanged between sellers and buyers wi