“I think this year will be the 1st year we start to see central banks start to hold digital currencies as part of their balance sheet. Bitcoin is already a top thirty currency by supply, and this trend and pressure to hold digital currency as part of reserves will only accelerate as the price rises,” said Peter Smith, CEO of Blockchain.info.
When Peter Smith talks, people listen.
In December 2017 it was reported that the Bulgarian government has more than three billion dollars in bitcoin in its accounts, mostly from funds seized during law enforcement investigations and crackdowns on multiple dark web marketplace operators.
In May, the Bulgarian authorities officially stated and confirmed that it had seized 213,519 Bitcoins that are now worth over $3.2 billion.
In addition to law enforcement seizures of bitcoin global central banks will likely begin to acquire large sums of Bitcoin, Ethereum, and other major Cryptocurrencies because the digital currency market has grown at an exponential rate over the past several years.
Bitcoin in particular has achieved a market valuation of roughly $250 billion and analysts expect it to continue evolving into a premiere store of value eventually competing against the eight trillion dollar gold market.
Furthermore, if bitcoin becomes one of the key reserve currencies of the global economy by targeting the forty trillion dollar offshore banking market, eight trillion dollar gold market as well as the fifty trillion dollar fiat currency markets, governments will need to have a real supply of BTC as well as alternative Cryptocurrencies (altcoins) as the leading financial authorities.
Nevertheless, the acquisition of BTC and other digital currencies in the market could demonstrate a sign of defeat to the general public, considering that for more than 2 full years some of the leading central banks & government agencies in Europe, China, and the United Kingdom have been working on issuing central bank-issued Cryptocurrency.
Two years later with literally hundreds of millions of dollars invested in R&D, central banks are nowhere close to testing government backed Cryptocurrency.
The utter lack of progress in central bank-backed cryptocurrency dev is – in our opinion – a result of the implementation of an ambitious plan that was never really realistic to begin with.
The whole purpose of virtual currencies as well as blockchain-based networks is based on the fundamental concept of decentralization.
Regardless of the fact that central banks believe in the technology that supports bitcoin or not would be of even less importance.