Banks Are Making "Private" Digital Currency to Compete With Bitcoin | dinbits


EBay founder Pierre Omidyar and his Omidyar Network investment firm plan on dumping a pile of cash into eCurrency Mint (eCM), a Dublin company that claims it has come up with a brand new ground-breaking idea. 

They have a revolutionary technology to change all of earth. Are you ready for this? They propose a new technology and it's called digital currency. They have branded it e-currency. 

Yes, I just said that. I'm not making this stuff up. It's straight from a press release. Here's a few excerpts.

"eCurrency also delivers major savings to governments and taxpayers: The cost of minting and distributing eCurrency is around one-tenth of the cost of printing, securing, distributing, and eventually destroying paper-based money. The solution works seamlessly across all existing payments systems and current infrastructures, and it can be customized to comply with nation-specific security and regulatory frameworks. It was developed based on feedback through direct engagement with 30 central banks and has been successfully piloted in multiple countries."

Is it just me or does this not reek of Josh Garza speak? He said the same thing back before the world-changing PayCoin was still-born.

"If we think of digital transaction platforms as a system of pipes ..."

Actually we call them chains of digital signatures and the platform is called this Blockchain thing.

"eCurrency will enable central banks to issue a single, safe digital currency instrument running through these pipes, making the entire system more secure, transparent, efficient, and, more importantly, trustworthy, as it is now backed by the country's central bank."

So, it's like [Swift wires], VISA, PayPal, etc...? The press release goes on to say: 

"Each unit of eCurrency consists of a "cryptocomplex": A self-contained security instrument made up of many layers of security technology uniquely bound together to ensure eCurrency cannot be counterfeited or compromised."

I see, so its like bitcoin... but not bitcoin ... because they don't like bitcoin ... so with everyone on earth trying to sell them stuff, why not buy it from eBay? I get it. 

"eCurrency can only be minted by the central bank in an offline process. ... After deployment, eCurrency's security features can be updated real-time, in order to stay ahead of counterfeiting threats... 

That's enough out of them. Did you notice where they contradict themselves? First they tell you it cannot be counterfeited, then they tell you they will try to "stay ahead" of counterfeiting but they lost me way before that. I was done after I read this line: 

"can only be minted by the central bank in an offline process"

Are you kidding me? I wouldn't trust a bank to mint Monopoly money! 

Oh yeeeaaaahhhh this is just a super idea...  and its got fraud and hacker written all over it. I bet hackers are salivating over the release of this.

Remember PayCoin?

What this sounds like is that they are going to make a "private bitcoin" which will be about as safe and realistic as a "private blockchain". I guess next year they are going to push to make everyone start calling it a private bitcoin instead of an altcoin. Are they using the Blockchain? Of course not, this might as well be PayPal or Venmo, which makes you wonder exactly what the point of this is.

Again, it sounds allot like Josh Garza and PayCoin, the self-mining coin of private access that was going to change everything and work through all of the standard channels as this press release also states. What is the difference if one charges a Visa card through the Visa network or one of these "e-currencies" through the Visa network? Why put it there in the first place? If its a digital representation of a dollar you have in your bank account (or someone's) then why exist at all? Just use the damn Visa card. They pretty much do exactly this already. Doesn't make allot of sense.

You don't need fiat currency to make bitcoin worth value. It does that on its own with its support. If this thing is going to basically be digital money representing physical money that they call an Altcoin, then it's no different than Google Wallet, Square, or one of the hundreds of prepaid cards out there. Perhaps some added security to do a better job of protecting against credit card fraud and that could be the angle here.

Perhaps eBay's founder is just out to cash in on Bitcoin and since he didn't mine or buy any, he just figured he'd steal the idea and talk some folks into buying it. There's been allot of that going around. One thing is for sure, if you want to get rich off Bitcoin the secret is now uncovered, the current model is apparently that you have to not call anything bitcoin and make a bunch of the same shit sound like something new. Then just go sell it to some idiot at a bank.

Actually, this idea has been around for a while just look at all of the Altcoins out there, or not out there anymore. 1000 different altcoins fail yet these clowns plan on competing with bitcoin by making another bitcoin that only they can control. Yeah ... sign me up for that IPO!

Why do I get the feeling that someone is just going to go push a button and fill up a database table in the back room? "Hey Harv, run back and execute me a million will ya? Running low up here at the teller." ... obvious it wouldn't be that ridiculous, but you get the point.

A Bank Altchain - Wooo

They seem to miss the entire point of Bitcoin so far into the Bizzaro world that I had to triple check the source to see if I was actually reading a press release from a legitimate source. 

All kidding aside, they are going to "mint" a digital currency "privately" in an "offline" process.

Just let that one sink in for a few minutes... that seems a tad askew. 

This private back-room closet currency even being thought up is a perfect example of why they just do not get it. It is they themselves that are actually one of the biggest problems to begin with. Just about everything in this press release is precisely why bitcoin exists in the first place. 

Not only do these banks not understand, they don't understand to the point they go far beyond just giving bitcoin a cold shoulder ... they go off and decide to make a "private" version of it.


UPDATE [12/12/2015 3:44pm PST]: The actual original press release is now posted here.






Story by dinbits
Press Release Source: PRNewsWire
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